The growth of consumer credit in Asia

He, Dong and Yao, Effie and Li, Kim-hung (2005): The growth of consumer credit in Asia. Published in: Hong Kong Monetary Authority Quarterly Bulletin No. March 2005 (March 2005)

Abstract

Consumer credit has shown strong growth in emerging and newly industrialised Asian economies in recent years. While credit card lending has helped smooth consumer spending and improved the profitability of financial institutions, it also represents a new source of risk.

Preventing financial and macroeconomic instability associated with consumer lending requires policy makers to be confident that lenders have proper risk management systems in place and consumers have sustainable debt burdens. Public policy also needs to ensure that essential infrastructure for consumer credit is available and set up properly, such as credit information bureaux and personal debt workout systems.

• Item Type: MPRA Paper
• Language: English
• Keywords: Asia; Consumer credit; financial services industry
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

References

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Wensheng Peng, Lillian Cheung and Cynthia Leung, “The Property Market and the Macro-Economy”, HKMA Quarterly Bulletin, May 2001

Kitty Lai and Raphael Lam, “The Nexus of Consumer Credit, Household Debt Service and Consumption”, HKMA Quarterly Bulletin,November 2002

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