Journal Article

Recent trends in the profitability of credit card banks

Abstract: Competition among credit card issuers has increased sharply over the past few years. Despite this trend, the profitability of credit card banks not only remains high relative to the rest of the banking industry but continues to grow. This article examines recent trends in credit card bank profitability and, by looking beyond the aggregate data, uncovers some important differences between credit card banks owned by bank holding companies and those owned by nonbank firms.

Keywords: Credit cards; Nonbank financial institutions;

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Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Quarterly Review

Publication Date: 1994

Volume: 19

Issue: Sum

Pages: 107-111