Challenges and policy implications of Asia's growing credit card markets
Credit card lending in Asia has grown rapidly since the 1997 Asian financial crisis. This growth has seen several episodes of sharp booms and busts, posing new risks to financial stability. This paper attempts to learn more about the credit card markets and shed light on and draw lessons from some of the core common elements in the three recent episodes of credit card lending distress in Asia. Policymakers need to learn more about the risks arising from this type of consumer lending and respond with enhanced supervisory capacity, better market infrastructure, and appropriate prudential measures.