Credit Card Databook, Part 2: Balancing Risk and Reward in a Resilient Economy

The U.S. consumer credit card market remains strong for issuers, but there is reason for concern and diligence in portfolio management. Cards, which remain highly popular among consumers, are seeing slower profitability growth, and rising rates of delinquencies and charge-offs bear watching. The risks are particularly notable for smaller issuing institutions, which generally have looser underwriting standards. 

This Javelin Strategy & Research report, part of an annual series that examines the U.S. card market, digs into the economic indicators issuers should be watching as they balance the rewards and risks associated with cultivating their portfolios.

Key questions discussed in this Credit report: 

• How are issuers responding to macroeconomic conditions?
• What are the differences between small-bank and large-bank portfolio risk?
• What risk scenarios should issuers prepare for?

Companies Mentioned: 

American Express, Bank of America, Board of Governors of the Federal Reserve System, Capital One, Chase, Citi, Discover, Elan Financial Services, Equifax, Federal Deposit Insurance Corporation, Federal Reserve Bank of New York, Federal Reserve Bank of Philadelphia, Federal Reserve Bank of St. Louis, FICO, Synchrony, TCM Bank, TransUnion, U.S. Bank, Wells Fargo