Credit Cards Market in Russia: Myths and Reality
Yu.S. Ezrokh
Novosibirsk State University of Economics and Management National Research
Keywords: грейс-период, закредитованность, льготный период, потребительский кредит, розничный банковский кредит, Grace period, debt load, grace period, consumer credit, retail bank credit
Abstract
The article disproves the current myths about the functioning of the credit card market in Russia in the area of: a) the insignificance of the banking segment; b) the«usual» cost of borrowing; c) ease of use of grace-periods (preferential interest- free periods); d) low impact on the growth of borrowers’ debt load; e) the possibility of using non-activated cards as a strategic financial reserve; e) economic attractiveness of a new type of credit card - installment cards; g) foreign experience in the functioning of the credit card market in developed countries (using the example of the UK). On the basis of analysis carried out by the author, he has formulated a number of major problems that impede the effective development of the credit card market in Russia at the present stage and suggested a number of debatable solutions.
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