Naslov
Commercial Banking and Personal Indebtedness in Croatia

Autori
Filipović, Ivan ; Škalamera-Alilović, Dunja ; Štambuk, Ana

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Economic and Social Development / Jovancai Stakic, Ana ; Kurecic, Petar ; Dobrinic, Damir - Beograd : VADEA ; Sveučilište Sjever ; Megatrend univerzitet, 2016, 66-79

Skup
14th International Scientific Conference on Economic and Social Development

Mjesto i datum
Beograd, Srbija, 13.05.2016. - 14.05.2016

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
Commercial Banking ; Consumer Behavior ; Croatia ; Personal Over-indebtedness

Sažetak
Social phenomenon of personal over-indebtedness has emerged in the past thirty years. The trend of excessive indebtedness of households is not losing but gaining momentum. The problem of personal over-indebtedness becomes focus of interest of regulators, research community and the public in general. In Croatia the numbers of citizens whose bank accounts are frozen as well as the level of their debt are steadily rising. One of the reasons of such trend is easier access to debt. There is evidence that accessibility and volume of household credit instruments grows. The literature suggests the influence of new, technologically powered techniques of screening as one source of broadening of the borrowing capacity of households. Studies also document the process of „credit democratization“, one of the reasons enabling it being the relaxation of financial regulation. Only few studies can be found that research the role of bank operations policies in inducing the higher levels of household debt. Bank marketing, specifically the advertising and promotion are the tools to communicate with clients, and it has been proven that effective marketing content is as powerful as the interest rate level in deciding upon getting a credit. This leads the way to the research of possible relation between marketing efforts of the bank and the level of household indebtedness. This paper focuses on the possible proactive role of banks, driven by the profitability, and accompanied with the inappropriate quality and level of regulation, in the rise of the number of over-indebted persons in Croatia. The effect the economic downturn on proposed relationship is also taken into account. Analysis is based on the bank financial statements data and selected macroeconomic indicators. The goal of the paper is to describe how banks impact the consumer behavior, and consequently give incentive to the rise of personal indebtedness in Croatia.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA