, Japan

Record high PPR on credit cards in Japan credit positive: Moody's

Thanks to its risk reduction effect.

The emergence of a record high principal payment rate (PPR) on Japan credit cards is credit positive for securitizations backed by Japanese credit cards because it reduces the risk of losses from defaults, an analysis says.

According to Moody's Structured Thinking: Asia Pacific newsletter, when PPR is high, card holders clear their debt sooner, which leads to the shortening of the maturity of credit card asset-backed securities (ABS) transactions.

This in turn leads to a lower cumulative default rate in the pools through the life of the deals.

Here's more from Moody’s Structure Thinking: Asia Pacific:

The PPR for Japanese credit-card ABS increased steadily from 2011 to 2013, hitting a new high in December 2013, owing to a decrease in the average loan balance per receivable10 and the payment requirement tables adopted by originators that basically require higher principal payment rates for borrowers with smaller loans.

PPR will stay at its current high levels as long as the major originators maintain their current payment requirement tables and average loan balances. We expect the average loan balance to maintain its current level.

Pembekuan pendanaan menghantam penyedia layanan BNPL

Investor semakin sedikit mengalirkan dana ke penyedia layanan BNPL yang sudah menghadapi keuntungan margin yang tipis.

HSBC: Aliansi bank-fintech merupakan win-win

Pemberi pinjaman dapat belajar dari teknologi disruptif sambil membantu mereka mematuhi regulasi.

Tokenisasi aset perdagangan untuk menjembatani kesenjangan pembiayaan

Teknologi blockchain dapat mendesentralisasikan operasi keuangan dan mempermudah akses kredit.

BCA menjalankan komitmen terhadap keuangan berkelanjutan

Bank asal Indonesia ini mempertimbangkan aspek lingkungan dan tata kelola dalam keputusan pemberian pinjaman.

Mengapa UNOBank mendorong embedded finance tumbuh di Filipina

Bagi UNOBank, banking interface terpadu adalah strategi pertumbuhan sekaligus upaya inklusi keuangan.

OCBC mencoba mengurangi kesenjangan manfaat bagi agen properti di Singapura

Produk terbarunya menawarkan manfaat finansial di bidang perbankan, asuransi, dan perdagangan.

Upaya Malaysia menjadi anggota BRICS untuk mendorong perombakan sistem perbankan

Namun, tantangan muncul ketika menjauh dari ketergantungan pada AS dan SWIFT.

Platform pembayaran PingPong memperoleh lisensi PJP di Indonesia

PingPong mengincar ekspansi ke pasar ekspor senilai $320 miliar di negara tersebut.

Merger dan penutupan mengancam 3.800 bank di area pedesaan Cina

Sekitar 70 bank di area tersebut telah merger sejak 2023.