Bankers across Canada are more pessimistic than those in the United States when it comes to the outlook for credit card delinquencies, according to analytics software company FICO (NYSE:FICO).
A survey released April 8 found that 54% of Canadian respondents believe that credit card delinquencies will increase in the next six months, compared with 44% of Americans polled.
The study surveyed bankers across North America, and found that this was the fourth consecutive quarter in which pessimism has increased when it comes to credit card debt.
"We've seen concerns about delinquencies creeping up for a few quarters," said Dr. Andrew Jennings, chief analytics officer at FICO and head of FICO Labs.
"If delinquencies reach an uncomfortable level, we may see lenders pull back again."
The survey found that slightly fewer Canadian bankers than Americans believe consumers will be requesting more credit in the next six months (59% and 61%, respectively).
"This is the third consecutive quarter in which the Canadian respondents believe consumers will request an increase," said Robin Findlay, senior director and head of FICO Canada. "This adds an interesting layer as some of our major lenders have recently lowered their rates in order to generate interest in additional credit.
"However, as our survey has found, delinquency rates continue to rise, which may make for a compelling next couple of months as Canadian lenders react to the increased risk levels."
