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Credit card minimum payment restrictions / by Jason Allen, Michael Boutros and Benedict Guttman-Kenney.FB3-5/2024-26E-PDF

"We study a government policy that restricts repayment choices with the aim of reducing credit card debt. The policy requires the minimum payment on credit card balances in Quebec to be at least 2% of the statement balance for cards opened before August 2019 and at least 5% for cards opened after August 2019. The rest of Canada is unaffected. We estimate this policy's effects by applying a difference-in-differences methodology to comprehensive, Canadian consumer credit-reporting data. The policy causes a persistent increase in minimum payments. The policy has trade-offs: reducing revolving debt comes at a cost of reducing credit access, and potentially increasing delinquency"--Abstract, page ii.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.942594&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleCredit card minimum payment restrictions / by Jason Allen, Michael Boutros and Benedict Guttman-Kenney.
Series title
  • Staff working paper = Document de travail du personnel, 1701-9397 ; 2024-26
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • ISSN assigned to different series.
  • "Last updated: July 15, 2024."
  • Includes bibliographical references (pages 41-45).
  • Includes abstracts in English and French.
Publishing information
  • [Ottawa] : Bank of Canada = Banque du Canada, 2024.
  • ©2024
Author / Contributor
  • Allen, Jason, author.
Description1 online resource (ii, 56 pages) : colour illustrations.
Catalogue number
  • FB3-5/2024-26E-PDF
Subject terms
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