The research of risks involving cashcard financing and pricing strategy - example of a local bank
| Autor: | Chu-Chen Hong, 洪志成 |
|---|---|
| Rok vydání: | 2005 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 93 After government officials granted the entry of new financial institutions into the domestic financial market, abundant new market entries had heated up the already competitive financial market making financial service providers turned to the area of consumer banking in order to leverage themselves out of the difficult situation. Cash card had emerged as the replacement of the traditional credit card operation, a widely used new financial product. If banks can do their jobs on credit risks assessments, identify groups with relative low default rate, lure card owners to increase card use through differential pricing, then banks would be in a good position to maximize their profits. This research base on a domestic cash card issuing agency; 552 samples were gathered with 416 normal samples and 136 overdue samples. Within the sample population, there were 226 inactive and 326 active accounts. 18 credit risk and account activation influencing factors were adopted from past literatures, contents of personal inquires from the Joint Credit Information Center, and subject bank’s cash card applications; our empirical study had shown that, through t inspection and logistic regression analysis, eight influencing factors of marriage, occupation, seniority, cash advance and revolving interests, cash card usage rate, credit holding period, unsecured loan balance, and abnormal repayments had significant explanatory ability and through cross examination analysis and summarizing characteristics of the above factors, we were able to find different groups of high usage rate/low overdue potential, high usage rate/high overdue potential, or high default rate. The results of empirical study indicated that with quality credit risk evaluation, subject bank can increase their cash card operation efficiency and lower the default rate by differential pricing strategy. For example, government employees, professionals, financial/insurance sector employees, and officers and employees of top 1000 companies belong to the group of high default rate. People with occupational seniority over 5.1 years, cash card usage rate below 50%, unsecured loan amount over NTD 10,010,000, and credit holding period over 5.1 years are contributors to bank profit. For people with different credit histories, differential pricing strategy should apply to increase cash card usage rate and strengthen bank’s earning power. As for people who had been checked for more than six times, cash card usage rate over 90%, own more than three different cash cards, or with two or more abnormal repayment records, anyone with two out of the above four conditions, bank should instead turn down their cash card applications politely to ensure the quality of loans. Keyword：cashcard, credit risk |
| Databáze: | Networked Digital Library of Theses & Dissertations |
| Externí odkaz: |
|