-
-
The New York Innovation Center bridges the worlds of finance, technology, and innovation and generates insights into high-value central bank-related opportunities.
Do you have a request for information and records? Learn how to submit it.
Learn about the history of the New York Fed and central banking in the United States through articles, speeches, photos and video.
-
-
-
The Governance & Culture Reform hub is designed to foster discussion about corporate governance and the reform of culture and behavior in the financial services industry.
Need to file a report with the New York Fed? Here are all of the forms, instructions and other information related to regulatory and statistical reporting in one spot.
The New York Fed works to protect consumers as well as provides information and resources on how to avoid and report specific scams.
-
-
-
The New York Innovation Center bridges the worlds of finance, technology, and innovation and generates insights into high-value central bank-related opportunities.
The growing role of nonbank financial institutions, or NBFIs, in U.S. financial markets is a transformational trend with implications for monetary policy and financial stability.
The New York Fed offers the Central Banking Seminar and several specialized courses for central bankers and financial supervisors.
-
-
| June 1998 Number 9815 |
| June 1998 Number 9815 |
| JEL classification: G2, D12 |
|
Authors: Sandra Black and Donald Morgan The dramatic rise in credit card charge-offs in the midst of a vigorous expansion suggests that bank card borrowers have become inherently riskier. This paper investigates how the mix of credit card borrowers has changed in recent years, and how those changes affect delinquency risk. The new card holders seem riskier along several dimensions. They tend to earn less, and as a result, they owe more relative to income. This rise in debt burdens almost certainly contributed to the rise in charge-offs, since debt burdens are a key determinant of delinquency risk. Card holders are also more likely to work at relatively unskilled blue collar jobs. This occupation shift may also have contributed to the rise in charge-offs, since delinquency rates are higher in these occupations, perhaps because income is more cyclical. Some of the personal characteristics and attitudes that have changed, such as marital status and job tenure, also imply somewhat higher risk. |
||
|
25 pages / 78 kb
