Search: credit card

Sort by: Relevance Date
1–8 of 8 collapsed search results for credit card
Did you mean credit cards?

RBA Glossary definition for credit card

credit card – A credit card is a card whose holder has been granted a revolving credit line. The card enables the holder to make purchases and/or cash advances up to a pre-arranged limit. The credit granted can be settled in full by the end of a specified period or in part, with the balance taken as extended credit. Interest may be charged on the transaction amounts from the date of each transaction or only on the extended credit where the credit granted has not been settled in full.

Search Results

Loan Rate Stickiness: Theory and Evidence

1 Jun 1992 RDP 9206
Philip Lowe and Thomas Rohling
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/1992/9206.html

Tests of Loan Rate Stickiness

1 Jun 1992 RDP 9206
Philip Lowe and Thomas Rohling
The credit card rate is constant at 18 per cent through the entire sample. ... If reverse adverse selection characterises the credit card market, then in certain circumstances, there may exist a role for government to encourage lower rates of interest on
https://www.rba.gov.au/publications/rdp/1992/9206/tests-of-loan-rate-stickiness.html

Theories of Loan Rate Stickiness

1 Jun 1992 RDP 9206
Philip Lowe and Thomas Rohling
High risk credit card borrowers, on the other hand, are more likely to be interest rate sensitive because they fully intend to borrow on their cards. ... When a customer wishes to change credit cards, the new issuer may require her to pay off the balance
https://www.rba.gov.au/publications/rdp/1992/9206/theories-of-loan-rate-stickiness.html

Appendix 1: Data

1 Jun 1992 RDP 9206
Philip Lowe and Thomas Rohling
C) Credit Card Lending Rates. This rate is from internal RBA sources, and is an average of rates reported by the major banks on a bankcard with 55 day free credit ... Credit Card Rate. The credit card rate is from the Federal Reserve Bulletin, Table 1.56,
https://www.rba.gov.au/publications/rdp/1992/9206/appendix-1.html

Introduction

1 Jun 1992 RDP 9206
Philip Lowe and Thomas Rohling
These explanations are based on credit rationing, switching costs, risk sharing and consumer irrationality. ... These include the rates on housing loans, secured and unsecured personal loans, business loans and credit cards.
https://www.rba.gov.au/publications/rdp/1992/9206/introduction.html

References

1 Jun 1992 RDP 9206
Philip Lowe and Thomas Rohling
Download the Paper 820. KB. Ausubel, Lawrence M., “The Failure of Competition in the Credit Card Market”, American Economic Review, March 1991, 81, 50–81. ... Calem, Paul, “The Strange Behavior of the Credit Card Market”, Business Review,
https://www.rba.gov.au/publications/rdp/1992/9206/references.html

Appendix 2: Regressions Using the Change in Interest Rates

1 Jun 1992 RDP 9206
Philip Lowe and Thomas Rohling
0.46}. 0.92. {0.16}. Credit Card. 0.05. (0.02). 0.001. (0.02). 0.003. {0.00}.
https://www.rba.gov.au/publications/rdp/1992/9206/appendix-2.html

Summary and Conclusions

1 Jun 1992 RDP 9206
Philip Lowe and Thomas Rohling
For credit cards, personal loans, owner-occupied housing loans and the standard overdraft rate, changes in the banks' marginal cost of funds have not been translated one for one into the ... Finally, we discuss a form of consumer irrationality in the
https://www.rba.gov.au/publications/rdp/1992/9206/summary-and-conclusions.html