The Regulation of the Credit Card Market in Turkey
The rapid growth in Turkish credit card market brought together new issues. Card holders and consumer unions complain about the high interest rates, economists complain about the default rates and banks complain about the amnesties. After all of these complaints coinciding with the accelerating suicide incidences due to credit card debts, regulation has been enacted in the credit card market in Turkey. In 2003, credit cards had been taken into the scope of the Consumer Protection Law. This was the first legal arrangement on the credit cards. However it was not satisfying. It was criticized for bringing out temporary solutions. In 2005, a more comprehensive credit card law came into effect. With this regulation, Central Bank of Turkey has put a ceiling on the credit card interest rates and clarified some issues that were left untouched. In this paper; reasons, advantages, disadvantages of this regulation are discussed along with a quick glance on the development of credit card market in Turkey. The regulation and amnesties in 2003 and 2005 are examined and their effects are exposed from the point of view of parties involved: banks, customers and government.
(This abstract was borrowed from another version of this item.)
|Date of creation:||2006|
|Date of revision:|
|Contact details of provider:|| Postal: Natuk Birkan Hall, Bebek, 34342 İstanbul|
Phone: +90 (212) 359-6505
Fax: +90 (212) 287-2453
Web page: http://www.econ.boun.edu.tr/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ahmet Faruk Aysan & A. Muslim, 2006.
"The Failure of Competition in the Credit Card Market in Turkey: The New Empirical Evidence,"
2006/09, Bogazici University, Department of Economics.
- Ahmet Faruk Aysan & Nusret Ahmet Muslim, 2006. "The Failure of Competition in the Credit Card Market in Turkey: The New Empirical Evidence," Working Papers 2006/10, Turkish Economic Association.
- Aysan, Ahmet Faruk & Müslim, Nusret Ahmet, 2006. "The Failure of Competition in the Credit Card Market in Turkey: The New Empirical Evidence," MPRA Paper 5483, University Library of Munich, Germany.
- Ausubel, Lawrence M, 1991. "The Failure of Competition in the Credit Card Market," American Economic Review, American Economic Association, vol. 81(1), pages 50-81, March.
- Joshua S. Gans & Stephen P. King, 2003. "A Theoretical Analysis of Credit Card Reform in Australia," The Economic Record, The Economic Society of Australia, vol. 79(247), pages 462-472, December.
When requesting a correction, please mention this item's handle: RePEc:bou:wpaper:2006/21. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lutfu Gozgucu)
If references are entirely missing, you can add them using this form.