A study was conducted on a bank that had decided to raise the minimum payment on its credit cards. Some consumers were affected and others were not, and the result was quite clear. Raising the minimum payment leads to an increase in payment defaults. The bank, in general, won’t like this, because it will suffer losses.
For the bank, finding a balance is difficult, because lower minimum payments allow it to earn more interest income, while higher minimum payments help ensure that the debt will be repaid. So, it’s not that simple to answer this question.