As of August, the overdue loan ration of cash-advance cards was 1.73 percent.
"However, the actual number may be higher since the customer base has expanded quickly and problem loans usually take more than six months to surface," she added.
Another analyst agreed, saying that cash-advance cards had expanded too quickly in the past two years, increasing the risk of problem loans.
"The cash-advance cards' target customers are mostly young people with unfixed income sources, which may lead to problem loans, and the issuing banks should undertake stricter risk management measures in a bid to prevent an explosion in the future," said William Fong (方偉昌), an analyst at Primasia Securities Co.
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