DNB bank chief executive, Rune Bjerke, said growth in consumer loans has been too high in recent years, and he calls for stricter rules. DNB has 30% of the market for credit cards, reported the newspaper,Dagens Næringsliv.
‘The growth rate is higher, and marketing is more aggressive than what is common for the financial industry in general. It is necessary that the industry come together to mediate new industry standards. There may be a need for new policies’, said Bjerke.
He added that DNB is now reviewing credit card marketing and consumer loans to see if it has been ‘more than evident’(i overkant tydelig).
Around 60% of the market is credit cards, and the rest is other consumer loans, according to the Financial Supervisory Authority.
The strong growth of consumer loans leads to increasing debt problems. Earlier this month, the directorate notified that police enforcement officers had been asked to collect debt 360,000 times this year, a figure that has doubled in the past decade.
Source: NTB scanpix / Norway Today