Consumer Credit in Europe: Risks and Opportunities of a Dynamic Industry (Contributions to Economics)

Consumer credit has become a topical issue for researchers, regulators and the banking industry in Europe as a result of increasing market integration, regulatory changes and a growing tendency of households to use debt to finance consumption. This study uses a cross-country approach to look at a broad range of issues related to consumer credit in Europe. Focusing on both the supply and demand sides, it takes into account the structure and performance of financial intermediaries, the socio-demographic and economic profile of households and their risk of over-indebtedness, as well as the regulatory framework, such as the new Consumer Credit Directive. In the light of this analysis, measures for the prevention and management of over-indebtedness are presented. This book is essential for postgraduate students and specialists in financial institutions, for regulators and policy-makers who are in charge of efficiency and stability of financial systems. front-matter -1 Outline placeholder 0 Acknowledgements 0 Acknowledgements 0 Contents 0 List of Tables 0 List of Figures 0 fulltext 10 Introduction 0 1 Structure of the Book 0 2 Main Findings 0 fulltext_2 15 Chapter 1: The Determinants of Consumer Credit: A Review of the Literature 0 1.1 Introduction 0 1.2 The Life-Cycle and Permanent Income Theories 0 1.2.1 Credit Demand Factors 0 1.2.2 Credit Supply Factors 0 1.3 Empirical Findings 0 1.3.1 Participation in the Credit Market 0 1.3.2 Level of Borrowing 0 1.3.3 Cross-Country Analyses 0 1.3.4 Over-Indebtedness 0 1.3.5 Credit Constraints 0 1.4 Behavioural Economics 0 1.5 Summary of the Determinants of the Demand for and Supply of Consumer Credit 0 fulltext_3 31 Chapter 2: Household Consumer Credit Demand 0 2.1 Introduction 0 2.2 Consumer Credit in Europe 0 2.2.1 The Diffusion of Consumer Credit 0 2.2.2 Consumer Credit Growth Rates 0 2.2.3 Heterogeneous Markets: Possible Causes 0 2.3 Characteristics of Indebted Households 0 2.3.1 The Purpose of the Analysis 0 2.3.2 Results and Remarks 0 Appendix 0 fulltext_4 53 Chapter 3: The Profitability of the Consumer Credit Industry 0 3.1 Introduction 0 3.2 The Consumer Credit Industry: Main Features 0 3.2.1 Consumer Credit Lenders 0 3.2.2 Consumer Credit Products 0 3.3 Profitability Analysis of a Sample of Specialised Consumer Credit Companies 0 3.3.1 Objectives and Methodology 0 3.3.2 The Sample 0 3.3.3 Main Results 0 Appendix 0 fulltext_5 77 Chapter 4: From Indebtedness to Over-Indebtedness 0 4.1 Introduction 0 4.2 Over-Indebtedness: Defining Features 0 4.2.1 Measuring Over-Indebtedness 0 4.2.2 Possible Causes of Over-Indebtedness 0 4.3 Policy Measures for the Prevention and Management of Over-Indebtedness 0 4.3.1 Financial Education 0 4.3.2 Debt Counselling Agencies 0 4.3.3 Credit Bureau 0 4.3.4 Transparent Information 0 4.3.5 Responsible Arrears Management 0 4.3.6 Interest Rate Ceilings and Usury Laws 0 4.3.7 Debt Settlement Procedures 0 Appendix 0 fulltext_6 106 Chapter 5: Regulatory Framework 0 5.1 Introduction 0 5.2 The New Consumer Credit Directive 0 5.3 Information Requirements for Consumer Credit Agreements 0 5.3.1 Advertising 0 5.3.2 Pre-Contractual Information 0 5.3.3 Information to be Included in the Credit Agreement 0 5.3.4 Information to be Provided Throughout the Duration of the Contract 0 5.4 Assessment of Creditworthiness 0 5.5 Protection of Other Consumer Rights 0 5.6 The Supervision of Creditors and Credit Intermediaries 0 5.7 Further Remarks 0 Appendix 0 zback-matter 135 References 135 Looks At The Issues Related To Consumer Credit In Europe. Focusing On The Supply And Demand Sides, This Work Takes Into Account The Structure And Performance Of Financial Intermediaries, The Socio-demographic And Economic Profile Of Households And Their Risk Of Over-indebtedness, And The Regulatory Framework, Such As The Consumer Credit Directive. Contributions To Economics; Title Page; Copyright Page; Dedication; Acknowledgements; Contents; List Of Tables; List Of Figures; Introduction; Chapter 1: The Determinants Of Consumer Credit: A Review Of The Literature; Chapter 2: Household Consumer Credit Demand; Chapter 3: The Profitability Of The Consumer Credit Industry; Chapter 5: Regulatory Framework; References. By Daniela Vandone. Includes Bibliographical References (p. 129-134). Front Matter....Pages i-xiii Introduction....Pages 1-5 The Determinants of Consumer Credit: A Review of the Literature....Pages 7-22 Household Consumer Credit Demand....Pages 23-44 The Profitability of the Consumer Credit Industry....Pages 45-68 From Indebtedness to Over-Indebtedness....Pages 69-97 Regulatory Framework....Pages 99-127 Back Matter....Pages 129-134