The Analysis of Bank's Credit Card Ratio via GM(1,1) Model

Yuan-Chieh Chin；Jui-Tai Chang

Credit cards ； Effective credit card utilization rates ； GM(1,1) ； Missing point

Journal of Grey System

22卷1期（2019 / 09 / 01）

17 - 25

英文

As of year 2018, a total of 48.53 million credit cards have been issued by Taiwanese banks, with the average Taiwanese carrying 1.82 credit cards. No doubt, credit cards have become a fairly common method of transaction. All banks have endeavored to develop credit card issuance. They aim to promote widespread use of credit cards by motivating the general public to hold and use credit cards, thus boosting economic development. The paper targets 12 banks in Taiwan as subjects of investigation. Research data is based on effective credit card utilization rates during the period spanning from Jun, 2017 to Jan, 2018. The GM(1,1) model is employed for mathematical analysis. It can compensate the missing point inherent in utilization rate, thus facilitating overall analysis. According to this study, the GM(1,1) prediction model can compensate the missing point inherent in the card utilization rate. The finding of this research can serve as a guide for banks in their credit card business management strategy on the one hand, and boost the performance of credit card-related businesses on the other hand.