Credit Risk Aversion Model During Economic Downturns and Recovery-Reference-Cited by-同舟云学术

Credit Risk Aversion Model During Economic Downturns and Recovery

Published:2021 Issue: Volume: Page:305-322
ISSN:2327-5677
Container-title:Handbook of Research on Financial Management During Economic Downturn and Recovery
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Author:

Assensoh-Kodua Akwesi¹^ORCID

Affiliation:

1. Durban University of Technology, South Africa

Abstract

Credit defaulting in the financial sector is a worldwide delinquency that has become a nightmare for this sector. The search for a solution to root out this problem remains a big challenge for academics, the financial sectors, and the governments. For instance, per the American Bankers Association's (ABC) Consumer Credit Delinquency Bulletin, unserviced bank cards plunged two basis points to 2.96% of all accounts between July-August 2019. This value remained below the 15-year average of 3.68%. (Per ABC, delinquency is a late payment that is 30 days or more overdue.) Though these terrifying statistics sounds like good news, the Trans Union's Industry Insights Report found that the unserviced credit card rate reached 1.81% in the third quarter of 2019, rising from 1.71% for the third quarter of 2018. These figures from the credit bureau are based on accounts that are 90 days or more overdue.

Publisher

IGI Global

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