SINGAPORE: As more banks are offering credit cards that target students, the Monetary Authority of Singapore (MAS) will encourage the industry to come up with a Code of Conduct to bolster responsible lending practices.
This was revealed by Senior Minister Goh Chok Tong in a written answer to a question from Pasir Ris-Punggol MP Michael Palmer.
Mr Palmer had raised the issue of students being burdened with insurmountable debts, now that credit instruments are easily available.
Currently, there are credit cards in the market that do not have a minimum income requirement.
But there is usually a credit limit of S$500.
Mr Goh, who is also chairman of the MAS said, card issuers should be responsible when targeting students.
He pointed to some industry practices such as getting parental consent when cards are issued to those under 21.
Another way to prevent young cardholders from accumulating high debt is the credit limit.
The senior minister added that the minimum annual income for credit card applicants remains at S$30,000, and there are no plans to change this.
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CNA
