Liquidity constraints, consumption, and debt repayment: Evidence from macroprudential policy in Turkey

Liquidity constraints, consumption, and debt repayment: Evidence from macroprudential policy in Turkey

Using account-level credit card data from a large Turkish bank, we study the impact of a unique credit card policy that increases minimum payment on consumption and debt repayment. We show that the policy reduces credit card spending and debt, boosts existing debt repayment, and reduces credit card...

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Bibliographic Details
Main Authors: AGARWAL, Sumit, HADZIC, Muris, SONG, Changcheng, YILDIRAY, Yildirim
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2023
Subjects:
credit card policy
minimum payment
consumption
debt repayment
credit card spending
credit card debt
delinquency
Turkish bank
life cycle model
liquidity constraint
Economic Policy
Finance
Finance and Financial Management
Online Access:https://ink.library.smu.edu.sg/lkcsb_research/7193
https://ink.library.smu.edu.sg/context/lkcsb_research/article/8192/viewcontent/SSRN_id2569584.pdf
https://ink.library.smu.edu.sg/context/lkcsb_research/article/8192/filename/0/type/additional/viewcontent/hhad024_supplementary_data.pdf
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Institution: Singapore Management University
Language: English

Internet

https://ink.library.smu.edu.sg/lkcsb_research/7193
https://ink.library.smu.edu.sg/context/lkcsb_research/article/8192/viewcontent/SSRN_id2569584.pdf
https://ink.library.smu.edu.sg/context/lkcsb_research/article/8192/filename/0/type/additional/viewcontent/hhad024_supplementary_data.pdf

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