Credit card delinquency: Did unemployment and inflation influence it in the Philippines from 1999-2004

Date of Publication

2005

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Management of Financial Institutions

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Liberty S. Patiu

Defense Panel Chair

Angelito A. Bala

Defense Panel Member

Jacqueline S. Fernandez
Jerreza Torrevillas

Abstract/Summary

The study focused on credit card delinquency or the non-payment of, or payment of any amount less than the minimum amount due within two (2) cycle dates of credit card borrowings. There are many factors that affect the occurrence of default. However, this study is limited to two (2) major macro-economic factors namely unemployment and inflation. The study used multiple linear regression analysis on the quarterly data of five (5) credit card companies. The delinquency rates, unemployment rates and inflation rates from 1999 to 2004 were taken from these companies to know the influence of these macro-economic factors on credit card default. The data gathered on delinquency rates showed no trends because of the erratic movements of the rates of the five (5) credit card companies. The test showed that unemployment would greatly affect Bank A because it is the largest issuer of credit cards in the country. Thus, it also has the largest risk exposure. Due to the restrictions presented by the limited data available, the proponents believe that by extending the years or by increasing the sample or by increasing the controlling variables, more relevant information can be drawn and it can influence the findings using the regression model.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21818

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

59 leaves : illustrations

Keywords

Credit cards--Philippines

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