Regulation, Competition and Risk in the Market for Credit Cards

Author

Barry Scholnick

Organization

Faculty of Business, University of Alberta

Published

2000

Summary

Contrasting proposals have recently emerged concerning the need to regulate the Canadian credit card market.
The National Liberal Caucus Task Force on Financial Services recommended that interest-rate ceilings
be imposed on credit cards in Canada, while the MacKay Commission on Financial Services described the
credit card industry as being subject to increased competition, and did not recommend any such regulations.
Based on evidence provided here on card providers, card consumers, and the changing nature of the credit
card market, it is argued that ceilings are not the appropriate regulatory response.

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Source: Consumer Policy Research Database