Bankers predict an increase in credit-line requests
Risk managers at banks in Canada and the United States believe credit-line increase requests will rise, according to a study from the Professional Risk Managers' International Association and the credit scoring company FICO.
Asked about the entire consumer credit market, 55 percent of those polled said they expect the requests to increase significantly or somewhat in the next six months, down from 61 percent in the fourth quarter of 2013.
Meanwhile, about half (51 percent) predict the number of delinquencies to stay the same, about the same percentage as in the fourth quarter of 2013. Some 37 percent expect an increase of some kind.
Two out of three risk managers polled predict average balances on credit cards to rise over the next six months, the highest percentage for that figure in the survey's four-year history.
Andrew Jennings, chief analytics officer at FICO and head of FICO Labs, warned that while the numbers show that more consumers are getting credit, if delinquencies increase, lenders could retreat as they did during the Great Recession.
A total of 229 risk managers at U.S. and Canadian banks were polled in February 2014. Columbia Business School's Center for Decision Sciences analyzed the survey results. The survey, for the first quarter of 2014, is called "Consumer Credit Risk -- North America Trends and Expectations."
To use the graphic on your site, use the following code:
- Many holiday shoppers would give up their data for discounts – A new survey shows the share of U.S. consumers who are reluctant to give up their data to a store for a holiday discount has fallen since last year, despite high-profile data breaches ...
- Study: Millennials outdoing parents, grandparents on smart money moves – A new study shows millennials are outdoing their parents' and grandparents' generations when it comes to keeping spending and debt in check ...
- Millennials go mobile to manage their money – and check their credit scores – Nearly half of U.S. millennials use their smartphones to check their credit scores. And a majority of young adults use their phones for a variety of other financial activities ...