Default Risk Study of The Issued Cash Cards User

• Main Authors: Yuan-Szu Lee, 李彥仕
• Other Authors: H. W. Chou
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/2374a6

碩士 === 國立中央大學 === 資訊管理學系碩士在職專班 === 94 === Consumer banking services form primarily profitable activities in most banks, of which cash card service makes up the largest revenues of personal banking. This financial product has some advantages, including high spreads, high efficiency and high returns. Additionally, with the increasing number of holders and using rates year by year, cash card service becomes the most important product and makes a lot of profits for banks. The characters of cash card service are easy application and fast approval. Because of high interest rate, banks aim at their customers whom are not sensitive to it. Since the competition among banks is violent in today’s world, banks loosen credit requirements and simplify operation processes to broaden market share. However, some banks can not manage credit risk or achieve economic scale, they would perhaps face huge deficit or even withdraw from the market of cash card services. In the present study, we want to find the characteristics of slack card holders. The sample data is taken from internal information of a sample bank. We analyze the consumers who use cash cards and find several factors which affect the credit risk. After the analyzing process, we use Logistic Regression statistic method to find out what important factors could lead to customers’ deferred repayment behaviors. Then we can give some significant implications, such as how to run a bank and how to control risk, to help banks strength their performance and competitive advantage. The results of data analysis show that there are seven significant variables, including frequency of credit inquiry by other bank, education levels, gander, the type of housing, working experiences, the days between issue day and first loan day, and the ratio of total payment in six month to total wiredraw in six month. Furthermore, the effects of two variables, the days between issue day and first loan day, and the ratio of total payment in six month to total wirthdraw in six month, are not found in other studies, so they are very substantial distributions in this study.