Chart 52 The Denominator Effect: Shrinking Portfolios Will Create Higher Loss Ratios (continued from Chart 51)

Year Revolving Credit Card Debt Year-Over-Year Growth (percent) Home Equity Year-Over-Year Growth (percent)
1995 21% 5%
1996 13% 7%
1997 7% 16%
1998 7% -2%
1999 5% -3%
2000 12% 30%
2001 5% 19%
2002 3% 38%
2003 3% 33%
2004 4% 41%
October 2005 2% 9%

Notes: Since 2000, home equity growth has consistently outpaced credit card debt growth by a significant margin. In 2005, home equity growth slowed considerably. Currently, home equity growth is at a 5-yr low.
Sources: Federal Reserve and CIBC World Markets.