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We study household credit responses to Hurricane Harvey using new, geographically granular data on credit cards, mortgages, and flooding. Estimates from a differences-in-differences design that exploits the flooding gradient show that affected households only borrow at low-interest rates, often using promotional (zero interest) cards and that they quickly pay down balances. We also document that take-up of forbearance (borrowing by missing mortgage payments without penalty) increases with flooding. These results are attenuated in floodplains, particularly in structures subject by code to physical hardening. Our results indicate that credit acts as a substitute for the lack of physical hardening. [ABSTRACT FROM AUTHOR]

This article tests the effect of a novel credit card payment format—repayment-by-purchase—on consumers' payments toward credit card debt. In contrast to typical balance repayment, where consumers make repayments relative to a total amount owed, repayment-by-purchase prompts consumers to select items (e.g., a Starbucks coffee) or categories of purchase (e.g., restaurant and café purchases) and to make payments toward their related debt. A field experiment first suggests that customers who opted into repayment-by-purchase paid 12.18% more toward their statement balance than a control group. Subsequently, five lab experiments show that consumers repaying-by-purchase increase repayment by an average of 22.47% over typical balance repayment. Process evidence suggests that these differences may be driven by repayment-by-purchase's power to increase purchase salience, which in turns increases perceptions of progress toward reducing debt. Consistent with this theory, the effect of repayment-by-purchase on bill repayment emerges regardless of whether consumers repay durable versus nondurable goods, and for specific items or categories of purchases, as long as the bill uses labels that are concrete enough to raise past purchase salience. [ABSTRACT FROM AUTHOR]

How does creditor health affect the pass-through of monetary policy to households? Using data on the universe of U.S. credit unions, I document that creditor asset losses increase the sensitivity of consumer credit to monetary policy. Identification exploits plausibly exogenous variation in asset losses and high-frequency identification of monetary policy shocks. Weaker lenders can respond more if they face financial frictions that easing alleviates. The estimates imply constraints on monetary policy become more costly in financial crises featuring creditor asset losses and that an additional benefit of monetary easing is that it weakens the causal, contractionary effect of asset losses. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online [ABSTRACT FROM AUTHOR]

This article explores young people's consumption of credit and the role of credit and debt in the distinction between youth and adulthood. The article engages with recent shifts in the nature of credit that have turned credit into an object of consumption in itself, as well as broader arguments about the financialisation of daily life, in order to understand the temporalities and moral distinctions enacted in different forms of credit and debt among youth. While it is well recognised that financialised capitalism operates and creates value from differences including gender, racialisation and class, the formation of youth subjectivities through credit and debt technologies remains unexplored in the literature despite an emerging crisis of consumer credit among young people. With this in mind, this article draws on a qualitative study of youth, credit and debt, to show that young people experience debt within contradictory temporalities and calculative logics, including the long-term 'investments' required to become an adult, and the logic of consumption attached to consumer credit which positions credit as a failure of self-responsible adulthood because it places future creditworthiness in jeopardy. In this way, the article suggests a future research agenda on the way that biographical distinctions are enacted through credit and debt, and how notions of youth and adulthood contribute to the qualification and consumption of credit. [ABSTRACT FROM AUTHOR]

This paper focuses on the impact of social reproduction patterns on borrowing experiences in everyday life, linking two lines of research within feminist and critical International Political Economy (IPE) literature of the everyday, one on social reproduction and debt, and the other on financial subjectivities. Drawing on interviews with women from indebted households in Istanbul, Turkey, it specifically explores how this impact is reflected in the meanings attached to borrowing and the perceptions of what it entails to be a debtor, thereby generating gendered implications. This article reveals that borrowing from family and friends, once seen as an expression of trust and solidarity, is now associated with financial dependence and humiliation, while borrowing from banks is perceived as a means to achieve self-reliance and self-responsibility. However, these meanings contradict women's self-identifications as debtors, which are framed in moral terms surrounding the structural necessity of incurring credit-debt for social reproduction. This paper contributes to political economy scholarship by addressing how the everyday lives of the indebted are linked to the broader global financial system, mediated by the specific conditions of a Global South context (Turkey) characterized by subordinate financialization, the political use of credit expansion, and a neoliberal/conservative gender regime. [ABSTRACT FROM AUTHOR]

Copyright of Contaduría y Administración is the property of Facultad de Contaduria y Administracion-Universidad Nacional Autonoma de Mexico and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

A rich literature uses law and social science methods to better understand household financial distress and overindebtedness both inside and outside of bankruptcy. This scholarship contributes to several ongoing scholarly conversations, such as those on income and wealth disparities across race and class, how people live in circumstances of financial precarity, why people turn to the legal system to solve their problems, and how to improve access to justice so people can get the help they need. We first review the current literature about who files bankruptcy, the contributors to people's need to file bankruptcy, what happens to them in bankruptcy court, and what happens after their bankruptcy cases conclude. We then outline a research agenda of low-hanging fruit that will contribute to broader sociological and sociolegal research agendas, including economic mobility, aging, gender studies, health studies, family studies, social psychology, and policy work. [ABSTRACT FROM AUTHOR]

Copyright of Financial & Economic Law Review is the property of Angle Publishing Co., Ltd and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial & Economic Law Review is the property of Angle Publishing Co., Ltd and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial & Economic Law Review is the property of Angle Publishing Co., Ltd and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial & Economic Law Review is the property of Angle Publishing Co., Ltd and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Consumers often receive a full or partial refund for product returns or service cancellations. Much of the existing literature studies cash refunds, where consumers get the money back minus a fee upon a product return or service cancellation. However, not all refunds are issued in cash. Sometimes consumers receive credit that can be used for future purchases, oftentimes with an expiration term after which the credit is forfeited. We study the optimal design of credit refund policies. Different from models that consider cash refunds, we explicitly model repeated interactions between the seller and consumers over time. We assume that consumers' valuation for the product/service varies over time and that there is an exogenous probability for product returns. Several interesting results emerge. First, a credit refund policy facilitates intraconsumer price discrimination for a single type of consumers with stochastic valuation. Second, an optimal policy often involves an intermediate credit expiration term, under which a consumer with a high product valuation always makes a purchase, whereas a consumer with a low product valuation may be induced to make a purchase as the credit approaches expiration, leading to a demand induction effect. Finally, a credit refund policy can be more profitable than a cash refund policy and can lead to a win-win outcome for both the firm and consumers under certain conditions. We also consider several extensions to check the robustness of our findings. This paper was accepted by Jeannette Song, operations management. Funding: Y. Liu was substantially supported by a grant from the Research Grants Council of the Hong Kong Special Administrative Region, China (Project No. PolyU15502420). Y. Liu was also supported by a grant from NSFC [72293564/72293560]. Supplemental Material: The data and online appendices are available at https://doi.org/10.1287/mnsc.2020.03042. [ABSTRACT FROM AUTHOR]

We study credit contracts under a life‐cycle setting where time‐inconsistent agents lack the internal commitment to stick to consumption plans and external commitment to repaying loans. With unrestricted credit, agents with only internal commitment problems may overborrow. If, additionally, they face external commitment problems, lenders endogenously impose borrowing limits similar to the ability‐to‐repay rules consumer financial protection agencies impose. Even with restricted credit access, except in exceptional cases, agents suffering from the twin commitment problems can achieve, at most, fully sophisticated allocations. The government can achieve the first‐best allocations if and only if it is assisted with endogenously imposed borrowing limits. [ABSTRACT FROM AUTHOR]

Researchers and practitioners in financial services utilize a wide range of empirical techniques to assess risk and value. In cases where known performance is used to predict future performance of a new asset, the risk of bias is present when samples are uncontrolled by the analyst. Propensity score matching is a statistical methodology commonly used in medical and social science research to address issues related to experimental design when random assignment of cases is not possible. This common method has been almost absent from financial risk modeling and portfolio underwriting, primarily due to the different objectives for this sector relative to medicine and social sciences. In this application note, we demonstrate how propensity score matching can be considered as a practical tool to inform portfolio underwriting outside of experimental design. Using a portfolio of distressed consumer credit accounts, we demonstrate that propensity score matching can be used to predict both account-level and portfolio-level risk and argue that propensity score matching should be included in the methodological toolbox of researchers and practitioners engaged in risk modeling and valuation activities of portfolios of consumer assets, particularly in contexts with limited observations, a large number of potential modeling features, or highly imbalanced covariates. [ABSTRACT FROM AUTHOR]

This article explores the impact of financial factors outside of a defined contribution (DC) plan on retirement readiness for public-sector participants. The study reveals that a significant number of households experience monthly unfunded spending spikes, which can lead to increased credit card debt and the likelihood of taking a plan loan. The research emphasizes the importance of emergency savings in preventing a cycle of increasing debt that can negatively affect retirement readiness. It also highlights the role of overall financial wellness programs, such as budget webinars and emergency savings, in improving retirement planning. The study considers demographic factors and references external sources to support its findings. [Extracted from the article]

The motivation for this research was the need for scientific elaboration on the issues of managing the flexibility of the financial system to ensure its sustainable development. The purpose of the article is to develop a counter-cyclical approach to change management in banks for the sustainable development of the financial system. Based on data of 2020 and post-crisis economic recovery in 2021, the article reveals the positive effect of managing changes in banks in the form of sustainable development of the financial system. Alternative scenarios for managing changes in banks are compared in terms of advantages to enhance the resilience of the financial system. This serves as a justification for the fact that the contribution of banks' flexibility to this positive effect varies significantly depending on the phases of the economic cycle. The authors' SAP-LAP model has provided a qualitative interpretation of change management in banks in the context of the economic crisis to enhance the resilience of the financial system on the example of the credit services market. The theoretical impact consists in revealing the status quo that determine the flexibility of banks and their contribution to the sustainable development of the financial system. These conditions are the development of mobile money services and the expansion of ATM network, as well as specialization in the segments of the richest 60% and the poorest 40% of consumers of credit services. The practical significance of the results obtained in the article is that the developed new approach to the organization of banks' activities makes it possible to increase the flexibility of banks and thereby enhance their adaptability to the cyclical economy. [ABSTRACT FROM AUTHOR]

Neoliberalism eviscerated the value-sharing ethos of the postwar golden age (1945–1973), seeking to maintain social cohesion in civil society by "managing the discontent of the losers": reconciling working households to the realities of the neoliberal labor market by means of coercion, distraction, and debt accumulation (the last serving to limit the growth of consumption inequality in the face of burgeoning income inequality). The global financial crisis undermined the process of household debt accumulation, creating a crisis of neoliberal accumulation. Key to the institutional renewal required to address this crisis is managing the discontent of the losers inherited from the neoliberal era. One possibility is authoritarian neoliberalism, which involves amplification of the "coerce and distract" elements inherited from the previous regime. The alternative is social capitalism: a renewal of social democracy that eliminates the discontent of the losers and so reduces both the need and desire for illiberalism. [ABSTRACT FROM AUTHOR]

With generative artificial intelligence's growing availability in early 2023, many have expressed fears that this technological innovation might relieve humans of the burden of carrying out some repetitive and simple tasks, and possibly cost them their livelihoods. It also raised the specter that this, and related technologies, could end up displacing workers, including lawyers. The initial burst of enthusiasm surrounding the availability of generative artificial intelligence (GenAD to the public - including from members of the legal profession - was quickly dampened when lawyers began relying on the work product of this technology to aid them in preparing legal documents, with rather unfortunate results. In some instances, lawyers were subject to sanctions by judges for submitting documents with GenAI "hallucinations," where the technology "found" authorities for legal propositions where no such authorities existed, which those lawyers relied upon to their detriment. Given these and other experiences with GenAI demonstrating an inability to satisfy even the most basic standard of care that lawyers must meet when serving clients, the initial excitement surrounding this technology receded. Yet lawyers and technologists have continued to explore ways to harness GenAI to make the-work of the legal profession more efficient and effective, while ensuring that lawyers are able to uphold their ethical obligations, even when they deploy new technologies to attempt to address their clients' legal needs. While GenAI and other related technologies, like machine learning, might play some future role in displacing some, if not many, of the functions of the legal profession, the introduction of these new technologies might serve to address needs where the profession is currently failing. That is to say, GenAI does not run the risk of displacing lawyers where few lawyers currently serve clients in need. What is more, in at least some areas where lawyers are failing to meet the legal needs of those in need, those needs call for interventions that GenAI is quite well-suited to execute: highly repetitive tasks, at scale, involving problems of relatively low complexity, and possibly even relatively low stakes. One such area is consumer debt. In the United States, millions of Americans of low- and moderate-income are sued for relatively small amounts Of money-ranging from $5,000-10,000. Many of the plaintijfs in these cases are "debt buyers": entities that have paid a very small percentage of the face value of debts for the right to try to collect it and use the courts as their primary vehicle for doing so. The overwhelming majority of those creditor-plaintiffs are represented by counsel, whereas only a tiny fraction of the debtor-defendants have legal representation. The nature of these cases lends itself to the use of technology-driven interventions, fueled by GenAL to provide some legal guidance, support, and perhaps even the preparation of formal pleadings, in order to assist debtors to defend themselves in court. This Article explores the theoretical, technological, ethical, and practical challenges associated with creating a GenAI-powered intervention that might help address the significant asymmetry of legal representation and assistance in consumer debt cases. Through such an exploration, it will identify the opportunities and risks of developing such tools to help close the justice gap more broadly, in this and other areas of law where the nature of the dispute might lend itself to this type of intervention. It will also identify areas of further research and inquiry as the legal profession strives to not just adapt to, but also harness, the introduction of GenAI into the practice of law in ways that are effective, while also ensuring it will serve the broader goal of the profession, which should be to expand access to justice and do so in ethical, equitable, and meaningful ways. [ABSTRACT FROM AUTHOR]

The aim of the article was to assess the opinions of consumer credit borrowers on the information message provided to them by lenders at the pre-contractual stage. The opinions were presented in the context of the demographic characteristics of the respondents. The research question posed was whether, taking into account demographic characteristics, the assessment of consumer credit borrowers regarding the information message obtained at the pre-contractual stage varied. The research methodology included a questionnaire and Computer-Assisted Telephone Interviewing (CATI). For the information analysis, we employed the following non-parametric tests: the chi-square test of independence, the Mann-Whitney U test and the Kruskal-Wallis H test. No significant differences were observed in all the parameters of the assessment of the information message, which means that the answer to the research question was negative. The findings suggest that even though borrowers may positively assess the compliance with the information obligations by lenders, it does not mean that all credit decisions made were rational and appropriate to their financial situation. Our study focused on the consumer protection and employed non-parametric tests to analyze the consumer credit borrowers' assessment of the information provided to them by lenders. [ABSTRACT FROM AUTHOR]

This article makes a key contribution to the comparative political economy literature by accounting for the macroeconomic role of household finance. Based on post-Keynesian theories of finance and the financialization literature, we place house prices and mortgage credit squarely at the center of the macroeconomy, as speculative house price cycles can facilitate homeowner consumption via the use of equity release mortgages. Through an econometric evaluation of eighteen advanced economies from 1980 to 2019, we demonstrate that household debt is determined by house price inflation, and that rising household debt contributes to GDP growth, while business debt has negative growth effects. These results are consistent across countries with different growth models and financial systems. This suggests that the varieties of capitalism's focus on corporate finance is misplaced and that the growth models approach needs a theory of house prices, mortgage credit, and financial cycles to adequately conceptualize how debt-driven growth operates across advanced economies. [ABSTRACT FROM AUTHOR]

There is a growing interest in exploring contemporary financialisation in terms of the geographies of debt. Many economic geographers have adopted a financial ecologies approach to explain these geographies. While this approach provides analytical benefits, it nonetheless analyses debt almost exclusively in terms of consumer finance, thereby overlooking the relations of production in which many indebted households engage. To address this issue, I develop the agrarian financial ecologies concept, which both directs analysis towards the diversity of credit–debt relations in rural economies, and highlights the relationship between land, labour and debt in the process of agricultural production. I apply this concept to study farm household debt in Cambodia, where indebtedness has become a widespread problem among farmers facing rapid economic transformation in the countryside. By focusing on land and labour, I demonstrate how diverse credit–debt relations within Cambodia's agrarian financial ecology have produced uneven socio‐spatial outcomes, namely debt‐driven land dispossession. This paper advances geographic theory about the dynamics of value production, circulation and appropriation within geographies of debt. It also extends the empirical remit of existing financial ecologies scholarship by attending to the credit–debt relations that characterise many agrarian livelihoods today. [ABSTRACT FROM AUTHOR]

This paper deals with global imbalances as an increasingly important issue in our age. While the literature establishes that current accounts are inversely related to the ratio of income to consumption inequality in OECD, our study finds that this relationship is reversed in Asia. That ratio has much to do with various schemes of consumption smoothing, which are affected by policy interventions to alleviate the effects of rising income inequality. Different policies may generate opposite outcomes. In OECD, policy encourages consumer credit and deficit spending among low-income people so that consumption inequality is kept artificially low, leading up to a current account deficit. In Asia, policy promotes output growth via high savings with no well-developed smoothing schemes designed to help poor households, so that consumption inequality moves in line with income inequality, with excess savings recycled into a current account surplus. Hence, any reduction in global imbalances requires both regions to adjust their policies for mitigating income inequality and optimizing smoothing schemes. [ABSTRACT FROM AUTHOR]

The emergence of fintech companies has revolutionized the credit ecosystem by providing flexible credit products with lower interest rates and convenient repayment options. These companies have introduced fintech credit products (FCP) that target young consumers, including the popular Buy Now Pay Later (BNPL). Despite the increasing popularity of FCP, there is a dearth of research on understanding consumers' attitudes toward using them. Thus, this study aims to fill the literature gap by examining the attitude formation of young consumers toward FCP in the context of BNPL. Using a stimulus-organism-response framework and SmartPLS, the study assessed the stimulus (affordability, flexibility, and structural assurance) and organism (perceived usefulness and trust) factors that affect attitude formation toward FCP among young consumers. The result shows that affordability, flexibility, structural assurance, and perceived usefulness help form consumers' attitudes toward FCP. The findings of this study can contribute to understanding young consumers' preferences and expectations toward FCP and inform fintech companies in designing and marketing FCP that meet consumer needs. [ABSTRACT FROM AUTHOR]

Purpose: Consumer culture is promoting immediate gratification, and the rise of digital financial services is increasing the risk of indebtedness while debt reduces well-being and affects mental health. The authors assess the effects of consumer information provision, debt literacy, chronic debt and attitudes toward debt on the intent to purchase on credit. Design/methodology/approach: An online survey including an experiment with a credit offer vignette was conducted in a representative sample of Estonia (n = 1204). Treatment conditions depicted either the total cost and duration of the credit agreement or the annual percentage rate. Findings: Receiving modified information resulted in a 26 to 30 percentage points decrease in propensity to purchase on credit. Purchasing on credit was associated with attitudes towards credit and chronic debt, but not with debt literacy. Research limitations/implications: The findings reveal large effects of information provision and highlight the limited effects of debt literacy on credit decisions. Limitations may emerge from differences in financial regulation across countries. Practical implications: The authors' results highlight the importance of applying behavioural insights in consumer credit information provision, both in the financial sector and policy. Testing the messages allows having evidence-based solutions that promote responsible purchasing on credit. Originality/value: The findings call for changes in credit information provision requirements. Their effect is significantly larger compared to the literature, emphasizing the role of credit information provision in less regulated online markets. [ABSTRACT FROM AUTHOR]

Exploiting a unique high-frequency, individual-level database, we (1) construct individual-level, incentive-compatible proxies of impulsivity based on video gaming behavior and (2) use these proxies to evaluate predictions concerning how impulsivity shapes individuals' responses to a relaxation of credit constraints as captured by receiving a credit card. We discover that precard gaming intensity—as measured by the frequency and amount of game expenditures—is strongly and positively associated with (a) the probability of defaulting on credit card debt in the future, (b) postcard expenditures on luxury and addictive items, (c) surges in consumption spending immediately after receiving the credit card, and (d) rapid debt accumulation after obtaining the card. Differences in financial literacy, income, income variability, education, and demographics do not drive the results. The results are consistent with (1) neurological and psychological studies stressing that excessive gaming is associated with impulse control deficiencies and (2) behavioral theories stressing that impulsivity, i.e., time-inconsistent preferences for immediate gratification and ineffective strategies for avoiding myopic cues and temptations, substantially influence individual expenditure patterns and borrowing decisions when liquidity constraints are relaxed. This paper was accepted by Kay Giesecke, finance. Funding: C. Lin acknowledges the financial support from the National Natural Science Foundation of China [Project 72192841] and the Research Grant Council of the Hong Kong SAR, China [Project T35-710/20-R]. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2023.4931. [ABSTRACT FROM AUTHOR]

How does household exposure to a natural disaster affect higher education investments? Using variation in flooding from Hurricane Harvey (2017), we find that college-aged adults from flooded blocks in Houston are 7% less likely than counterparts to have student loans after Harvey, with larger effects in areas with more potential first-generation students. We find a similar relative decline in enrollment at more exposed Texas universities and colleges and a shift toward majors with higher expected earnings. Our results highlight a decrease in the quantity but an increase in the intensity of investments in human capital after the storm. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

We show that search frictions in credit markets affect accepted interest rates and loan sizes and distort consumption. Using data on car loan applications and originations not intermediated by car dealers, we isolate quasi-exogenous variation in both the costs and benefits to searching for credit. After identifying lender-specific policies that price risk discontinuously, we study the differential response to offered interest rates by borrowers who face high and low search costs. High-search-cost borrowers are 10 |$\%$| more likely to accept loan offers with higher markups, consequently originating smaller loans and purchasing older and less expensive cars than lower-search-cost borrowers. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

A randomized encouragement design yields null average effects of a credit builder loan (CBL) on consumer credit scores. But machine learning algorithms indicate the nulls are due to stark, offsetting treatment effects depending on baseline installment credit activity. Delinquency on preexisting loan obligations drives the negative effects, suggesting that adding a CBL overextends some consumers and generates negative externalities on other lenders. More favorably for the market, CBL take-up generates positive selection on score improvements. Simple changes to CBL practice, particularly to provider screening and credit bureau reporting, could ameliorate the negative effects for consumers and the market. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Nowadays, organizations are required to continue to innovate and adapt to challenges that may affect the achievement of business goals. The effort that can be done is to optimize the implementation of Organizational Learning. Organizational Learning cannot be carried out optimally without the role of superiors and employees. Therefore, the role of superiors in implementing Authentic Leadership needs to be considered. But Authentic Leadership is not enough to explain Organizational Learning. The existence of Authentic Leadership has the probability of creating a supportive and open environment so that it has an impact on increasing affective commitment to employees. Based on this explanation, the purpose of this study was to examine the influence of Authentic Leadership on Organizational Learning mediated by Affective Commitment. The sample of this research were employees at Bank X, consumer credit department and 216 subjects were obtained using the Accidental Sampling method. Data processing is done using PROCESS. The results showed that Authentic Leadership had a significant effect on Organizational Learning mediated by Affective Commitment with a BootLLCI value of 0.0041 and a BootULCI value of 0.0892. This type of mediation is Partial Mediation. Based on the results of this research, Organizational Learning can be optimized through the application of Authentic Leaders so that it can encourage the creation of affective commitment so that in the end employees are willing to give their best by developing knowledge or insights that can be used by the organization as a whole. [ABSTRACT FROM AUTHOR]

This study investigated a network of financial institutions in Korea using the Korea Consumer Credit Panel (KCCP). It is assumed that each consumer borrows from multiple institutions, so those institutions share risks from the same consumers regardless of the quality or type of loan. We constructed a financial network comprising those institutions and computed a contagion index based on their interconnections using a weight of probability of default for the individual borrowers. We found strong connection between banking institutions and credit card firms because of the convenience of making small loans using credit cards. However, with a weighted probability of default to the linkages among institutions, the connections between banking institutions and savings banks, non-credit card finance corporations and merchant banks are stronger than others, while banking institutions hold a central position and are exposed to the largest amount of loans individually. The contagion index hit a peak in 2013Q1 and then fell rapidly, before fluctuating at a relatively low level from 2016 to 2017Q2. The results enabled authorities to monitor systemic risk from the level of consumer credit, while accounting for specific types of consumers and their probability of default. This paper's main contribution is its construction of a network of financial institutions from the level of consumer credit. [ABSTRACT FROM AUTHOR]

Copyright of Zeitschrift für Bankrecht und Bankwirtschaft is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The aim of this paper is to analyse the evolution of Spanish households' indebtedness and financial vulnerability over the course of this century using micro-data from the Household Finance and Consumption Survey. Our results show a growing debt participation of Spanish households and an increase in the stock of outstanding debt of indebted households, a trend that reversed with the end of the Great Recession. Moreover, the percentage of financially vulnerable households according to three indicators grew dramatically until the end of the downward phase of the last economic cycle and showed considerable signs of improvement during the second half of 2010s. These results, nonetheless, call attention to the number of Spanish households being unable to service their debts in the face of an economic downturn. [ABSTRACT FROM AUTHOR]

"Buy-now-pay-later" (BNPL) is a relatively unregulated FinTech innovation that provides consumers with easy access to credit for retail purchases. BNPL spending is projected to reach $1 trillion by 2025, but we know little about its effects. Using banking data for 10.6 million U.S. consumers, we investigate the effects of BNPL on leading indicators of users' financial health. We find that new BNPL users experience rapid increases in bank overdraft charges and credit card interest and fees compared with nonusers, consistent with BNPL facilitating overborrowing. An instrumental variable exploiting consumers' pre-BNPL shopping habits bolsters our inferences. Our results inform regulatory investigations into the effects of BNPL on users' financial health and expand academia's understanding of an important consumer credit innovation. This paper was accepted by Camelia Kuhnen, finance. Funding: E. deHaan acknowledges financial support from Stanford University; B. Lourie and C. Zhu acknowledge financial support from University of California Irvine. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2022.03266. [ABSTRACT FROM AUTHOR]

As iii many other areas of financial consumer law, the European Court of Justice heralds a strong protective approach to the financier's duty to assess the creditworthiness of the consumer. But enhancing deterrence above all by means of contract law does not set afair and efficient balance between the quite diverse incentives of both parties in adjusting to the policy. [ABSTRACT FROM AUTHOR]

Household debt in Thailand has become a serious problem, particularly for the elderly, because they have less ability to pay debts compared to the working population. Therefore, better understanding of the elderly's debt and delinquency is crucial in policy formulation for the aged society. Previous works have focused on the elderly's debt, either at the macro or individual levels. Little is known about geographic differences at the regional level. Knowing where the elderly debt and delinquency tend to cluster could guide area-specific policies to tackle the elderly financial stability. This research aims to examine the spatio-temporal distribution of the debt and delinquency of the near-elderly population (age 50–59) and the elderly (age 60 and above) using data from the National Credit Bureau of Thailand from 2008 to 2019. The analysis focuses on various types of loans. Spatial clusters are identified by Moran's I and Local Geary statistics. The results show that the pattern of elderly debt and delinquency generally follows the life cycle hypothesis, except for credit card and business-related loans. There exist spatial clusters and spatial differences in different types of loans, suggesting regional heterogeneities that require area-specific policy responses. [ABSTRACT FROM AUTHOR]

The article discusses the origin of the modern credit system and the idea of a distinct financial identity in the U.S. Topics include a description of the American Credit System and the debtor identity, how individual debtors internalize the external structures of market capitalism and consumer debt society using French theorist Pierre Bourdieu's notion of habitus, and the consent and replication structures underpinning financial identity oppression in American capitalism.

Neoliberalism ushered in a debt-based economy for American society. The existing scholarship linking neoliberalism to personal indebtedness has mainly been at the macrolevel of analysis. There remains a need to investigate how neoliberalism operates at the microlevel and impacts the everyday lived experiences of consumers struggling with debt. Michel Foucault's concept of governmentality offers a useful analytical framework for unearthing the technologies that result in the subjectification of consumer debtors. A governmentality framework enables us to better understand how indebtedness presents both material and psychological harms for individuals and how neoliberal discourses are interiorized and facilitate a resurrection of financial identity. This research adds to existing governmentality studies by reporting on the responsive strategies to creditor demands and the moral self-accounting indebted individuals engage in when they fail to live up to the neoliberal model of the "entrepreneurial subject." Based upon thirty-six in-depth interviews with individuals possessing unmanageable debt and on the precipice of filing for bankruptcy, I argue that technologies of neoliberal governance serve to both discipline and recenter debtors as responsibilized entrepreneurial subjects who will reenter the economy and once again turn to a state of credit dependency. [ABSTRACT FROM AUTHOR]

Economic downturns represent an inevitable challenge that nations and businesses must confront, presenting considerable risks. As a result, it becomes imperative for them to formulate strategies to secure their survival. The world has recently experienced an economic downturn due to a pandemic. COVID-19 has caused a significant economic crisis, leading to job losses and disruptions across various sectors worldwide, including the Philippines. The study utilizes economic indicators to determine patterns, meanings, and subsequent opportunities. Specifically, the study sought to identify relevant economic indicators, find patterns and meaning within each indicator and among indicators, and determine implications from findings. Content analysis was used in the study. It is a qualitative research method to identify and interpret themes, meanings, and patterns. The materials used include eleven Philippine economic indicators, namely, the Philippine Stock Exchange Composite Index, Balance of Trade, Core Inflation Rate, Consumer Spending, Tourist Arrivals, Consumer Confidence, Consumer Credit, Gold Reserves, Foreign Exchange Reserves, and Money Supply M2, and Interest Rate. In conclusion, the study determined that the collective surge in economic activities is positively related to the rise of inflation; increased interest rates potentially mitigated the rise in inflation, and other factors negated the trade deficits and gold reserve fluctuations. The Philippine economy is on the path to recovery, and the unique interrelations of economic indicators imply a more stable environment in the Philippine economy. This signals a green light for investors and an opportunity for policymakers to fine-tune existing initiatives to sustain economic recovery. [ABSTRACT FROM AUTHOR]

This document explores the factors that have influenced the neutral real interest rate in the UK. It notes that the neutral rate has recently risen to just below 3% but is expected to decline to around 2% by 2030. Inflation expectations have primarily driven the increase in the nominal neutral rate, while the real neutral rate has risen more modestly. The UK's weak demographic and productivity prospects are projected to keep the neutral real rate at historically low levels. The document acknowledges the uncertainty in estimating the neutral rate and the challenges of accounting for structural changes in the UK. The Bank of England's Monetary Policy Committee has indicated the possibility of an interest rate cut in the near future. [Extracted from the article]

Purpose: Throughout the 21st century, US households have experienced unprecedented levels of leverage. This dynamic has been exacerbated by income shortfalls during the COVID-19 crisis. Leveraging and deleveraging decisions affect household consumption. This study investigates the effect of the dynamics of household leverage and consumption on the stock market. Design/methodology/approach: The authors explore the relation between household leverage and consumption in the context of the consumption capital asset pricing model (CCAPM). The authors test the model's implication that leverage has a negative risk premium by transforming the asset pricing restriction into an unconditional linear factor model and estimate the model using the general method of moments procedure. The authors run time-series regressions to estimate individual stocks' exposures to leverage, and cross-sectional regressions to investigate the leverage risk premium. Findings: The authors show that shocks to household debt have strong and lasting effects on consumption growth. The authors extend the CCAPM to accommodate this effect and find, using various test assets, a negative risk premium associated with household deleveraging. Looking at individual stocks the authors show that the deleveraging risk premium is not explained by well-known risk factors. Originality/value: This paper contributes to the literature on the role of leverage in economics and finance by establishing a relation between household leverage and spending decisions. The authors provide novel evidence that households' leveraging and deleveraging decisions can be a fundamental and influential force in determining asset prices. Further, this paper argues that household leverage might explain the small, persistent, and predictable component in consumption growth hypothesised in the long-run risk asset pricing literature. [ABSTRACT FROM AUTHOR]

As individuals age, they typically acquire more financial obligations, such as funding their children's education or planning for retirement, which can impact their decision to utilize consumer credit. This study aims to investigate the factors influencing the decision to opt for consumer credit at PT BPR Baturaja (Perseroda), with age serving as a moderating variable. The research methodology employed is associative descriptive research. The sampling technique utilized is probability random sampling, determined by the Slovin formula, resulting in a total sample size of 322. Data analysis was conducted using the Partial Least Square (PLS) method. The research findings lead to several conclusions: Firstly, service quality exerts a positive and significant influence on the decision to choose consumer credit at PT BPR Baturaja (Perseroda). Secondly, promotion demonstrates a positive but statistically insignificant effect on the decision to choose consumer credit at PT BPR Baturaja (Perseroda). Lastly, the interest rate has a positive and significant impact on the decision to select consumer credit at PT BPR Baturaja (Perseroda). The age variable acts as a Quasi Moderator (Quasi Moderation) on the influence of service quality on the decision to choose consumer credit at PT BPR Baturaja (Perseroda). The age variable acts as a Moderation Predictor on the influence of promotions on the decision to choose consumer credit at PT BPR Baturaja (Perseroda). The age variable acts as a Pure Moderator on the influence of interest rates on the decision to choose PT BPR Baturaja (Perseroda) consumer credit. [ABSTRACT FROM AUTHOR]

This paper explores the relationship between household debt and residents' health. Using the China Family Panel Studies (CFPS) database, we find that household debt has a negative effect, which shows asymmetry and persistence on residents' health. Further heterogeneity analysis reveals that an increase in the debt level of non-over-indebted households has a more significant negative impact on residents' health, and, therefore, households need to consider the possible impact on health welfare of increases in their debt level. [ABSTRACT FROM AUTHOR]

Most countries are still nations of homeowners, i.e. owning-centric despite home ownership being an economically irrational tenure due to its long-term financial risk. Seemingly, pre-existing social and institutional factors also shape people's tenure decisions, which supports a cultural explanation of tenure decisions. This paper frames the examination of tenure decisions from a cultural perspective in Malaysia, a Southeast Asian country with a strong home ownership tradition characterised by inflated house prices in its major cities and high household debts. A qualitative approach was adopted, involving a focus group discussion (FGD) and an open-ended online questionnaire survey (OQS). Two input categories (parental and societal) and five cultural determinants (filial piety, parental care, emulation, virtue signalling and status symbol) of tenure decisions were discerned. Considering the current trajectory of the global economy and local housing market, an honest reconsideration of the home ownership culture in Malaysia is proposed. [ABSTRACT FROM AUTHOR]

Federal regulators in 2010 amended lending rules to allow federal credit unions (FCU) to originate short‐term, small‐dollar amount loans, with an annual percentage rate of up to 1000 basis points above the otherwise imposed interest rate ceiling of 18 percent. The purpose of the change in policy was to allow FCUs the ability to provide their members with an alternative to payday loans. We find the decision to originate these higher‐interest loans is primarily influenced by the characteristics of a credit union's environment. Credit unions located in minority neighborhoods and in markets with fewer traditional financial services are more likely to participate in the payday alternative loan program. Participation in the program is shown to improve earnings performance without adversely affecting participants' loan quality. These results suggest credit unions can provide lower‐priced alternatives to payday loans that are beneficial to members and their credit unions. [ABSTRACT FROM AUTHOR]

Young people form the primary target demographic of new 'buy now pay later' (BNPL) and digital credit services. Despite consistent data showing young people as a cohort are particularly vulnerable to unsustainable levels of indebtedness, little is known about how young people define and make sense of the experience of being in debt through consumer credit services. This paper explores how indebtedness is experienced and understood in relation to wellbeing through a qualitative study using interviews alongside arts-based participatory methods of bodymapping and sandboxing with 24 young people in the Hunter region of NSW, Australia. These methods enabled particular attention to the embodied and affective elements related to the experience of indebtedness to understand debt's significance for wellbeing for young people. The embodied and affective registers of indebtedness are integral for understanding the conditions informing how wellbeing is negotiated and felt in this context. This study considers the role of BNPL services in young people's economic lives as part of broader processes of financialisation, and the significance of extended and ubiquitous forms of credit for young people's wellbeing. [ABSTRACT FROM AUTHOR]

This article examines two values that have long motivated work in economic anthropology: the value of denunciatory critique and the value of thinking otherwise. Through a retrospective analysis of research that I have conducted on consumer debt in Brazil, I offer two different versions of that research based on whether the story is driven by the first value of denunciation or by the second of thinking otherwise. In doing so, I suggest ways to address the limitations of both anthropology focused on denunciatory critique and the more recent development of an "anthropology of the good" by outlining what I call an anthropology of wisdom. [ABSTRACT FROM AUTHOR]