The Credit Card Act and Consumer Finance Company Lending

Elliehausen, Gregory; Hannon, Simona

doi:10.17016/feds.2017.072

Cited by 5 publications

(3 citation statements)

References 24 publications

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“…Big data credit investigation is involved with the following: unstructured data, such as network data focusing on serving inclusive finance, and targeting small and microenterprises and individuals without credit records and paying attention to some social behaviors of credit subjects, such as circle of friends, consumer preferences, and online search records and many more [21,22]. e perfect integration of big data technology and economy and the transformation and development of the credit investigation industry, which is the foundation of the market economy, cannot be separated from the support of big data technology, opening up a new direction for the development of the market economy [23]. First of all, the prominent "big" characteristics of big data technology make up for the shortcomings of the incomplete database under the traditional credit investigation system, and it is more conducive to the more comprehensive "reflection" of the credit investigation to the information subject.…”

Section: Consumer Finance Credit Risk Management Experiments Based On Big Data Credit Investigationmentioning

confidence: 99%

Credit Risk Management of Consumer Finance Based on Big Data

Hui-bo

2021

Mobile Information Systems

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In recent years, China’s consumer finance has developed rapidly, but the foundation is unstable, and the industry has serious problems of violent competition, excessive credit, and fraud. Therefore, we should attach great importance to the healthy development of consumer finance, especially the management of its credit risk. The application of big data credit investigation can provide early warning of potential risks and prevent the risk of excessive credit investigation. This paper starts with the definition of basic core concepts, such as traditional credit investigation, big data credit investigation, and consumer finance, analyzes the performance and causes of consumer finance credit risk, and combs in detail the relevant theories of the application of big data credit investigation in consumer finance credit risk management. The application of big data credit investigation has optimized the risk management process of consumer financial institutions, deepened the concept of Internet consumer finance, improved the risk management system, created a diversified credit information system, and strengthened the innovation of Internet consumer finance products and services. For example, credit scores provide the most intuitive quantification of consumer credit risk. For consumers with different levels of credit scores, different credit approval processes can be matched. For customers with high scores, the work process can be simplified without affecting the work results. It can reduce the workload of employees by 20% and increase the accuracy of customer credit risk prediction by 16%.

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Section: Consumer Finance Credit Risk Management Experiments Based On Big Data Credit Investigationmentioning

confidence: 99%

Credit Risk Management of Consumer Finance Based on Big Data

Hui-bo

2021

Mobile Information Systems

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“…The theoretical literature on financial contracts is voluminous. 18 Much of the literature can be divided into models of one-period contracts and models of long-term debt, such as installment or balloon loans.…”

Section: Theorymentioning

confidence: 99%

“…We incorporate aspects of 17 These are the authors' calculations using data from Mintel Comperemedia. 18 See, for example, Bolton and Dewatripont (2005) and Freixas and Rochet (2008). 19 As noted earlier, a significant share of credit cardholders pay off their balance every month.…”

Section: Theorymentioning

confidence: 99%

Dynamic Pricing of Credit Cards and the Effects of Regulation

Hong¹,

Hunt²,

Serfes³

2018

Working Paper (Federal Reserve Bank of Philadelphia)

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We construct a two-period model of revolving credit with asymmetric information and adverse selection. In the second period, lenders exploit an informational advantage with respect to their own customers. Those rents stimulate competition for customers in the first period. The informational advantage the current lender enjoys relative to its competitors determines interest rates, credit supply, and switching behavior. We evaluate the consequences of limiting the repricing of existing balances as implemented by recent legislation. Such restrictions increase deadweight losses and reduce ex ante consumer surplus. The model suggests novel approaches to identify empirically the effects of this law.

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Has Financial Regulation Been a Flop? (or How to Reform Dodd‐Frank)

Calomiris

2017

J Applied Corp Finance

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Recent bank regulations have imposed large compliance costs on banks of all sizes, and have increased the costs of borrowing to both consumers and companies. But in this summary of his recent book, the author argues that the problems with banking system regulation go well beyond the excessive costs. Indeed, Dodd‐Frank and other post‐crisis regulatory reforms have failed to address the major shortcomings that produced the crisis of 2007–2009. Most importantly, excessive housing finance risk was not dealt with adequately, and is already on the rise again. And prudential standards for banks, while much stricter, remain unreliable in a severe economic downturn. After providing evidence of the shortcomings of major parts of the regulatory structure created after 2008, the author points to fundamental problems in the thinking underlying the post‐crisis regulatory changes that made those reforms unlikely to succeed. Moreover, he argues that the new processes of financial regulation have fostered many abuses of the rule of law, which have politicized regulation, adding to its cost and discrediting important supervisory and regulatory agencies. The author suggests that simpler, more effective, less costly, and more respectable approaches to regulation are possible. He offers a set of principles to guide reform and proposes over 20 specific actions that would enhance the effectiveness, reduce the costs, and improve the processes of bank regulation.

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The Credit Card Act and Consumer Finance Company Lending

Abstract: The Credit Card Accountability and Disclosure Act (CARD Act)

Cited by 5 publications

References 24 publications

Credit Risk Management of Consumer Finance Based on Big Data

Credit Risk Management of Consumer Finance Based on Big Data

Dynamic Pricing of Credit Cards and the Effects of Regulation

Has Financial Regulation Been a Flop? (or How to Reform Dodd‐Frank)

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