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Empirical Analysis of Credit Card Delinquency Effect by Market Competition  

Ko, Hyuk-Jin (Department of e-Business, Korea Polytechnic University)
Seo, Jong-Hyen (Department of e-Business, Korea Polytechnic University)
Publication Information
Journal of the Korea Safety Management & Science / v.11, no.4, 2009 , pp. 261-267 More about this Journal
Abstract
The purposes of this article is to analyse how market competition of credit card company affect price(interest rate) and survival length of card users. This paper uses individual account data from a large Korean credit card company during the periods from 2002 to 2006. The findings of our study are as follows. First, market competition of credit card company have a negative effect with interest rate of credit card. Second, market competition of credit card company have a affirmative effect with survival length. Finally, The effect of Increasing delinquency rate due to price increase is smaller than decreasing delinquency rate due to extending survival length.
Keywords
Market Competition; Credit Card Delinquency; Interest Rate; Survival Period;
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