The credit card market conforms to the new regulations, and the interest rate range control is cancelled. It is reported that the profit model of credit card is interest plus handling fee. After the cardholder swipes the card, there is no need to pay any interest during the interest-free period, up to 50 days. However, after the interest-free period, if the cardholder chooses to overdraw without full repayment, it will generate overdraft interest rate. Generally speaking, the overdraft rate is much higher than that of bank loans in the same period. Official website, a reporter from Huashang Daily, found that the current overdraft interest rate of bank credit cards is basically calculated according to the daily interest rate of 5/ 1 10,000, that is, the annual interest rate is 18.25%.
Why does the central bank's cancellation of credit card interest rate range control also attract the attention of the industry? The central bank issued the Notice on Matters Related to Credit Card Business, which was subsequently implemented. Cancel the unified standard of credit card overdraft interest rate and implement the upper and lower limits of credit card overdraft interest rate. The upper limit of overdraft interest rate is 0.5 times of daily interest rate, and the lower limit of overdraft interest rate is 0.7 times of daily interest rate. The relevant person in charge of the central bank also made it clear that market pricing will be fully implemented when the time is ripe. In the view of senior credit card researchers, the sudden promulgation and emergency implementation of the Notice will loosen the credit card business after cleaning up and rectifying the online microfinance market, and completely release the constraint of credit cards on overdraft interest rates, which reflects the firm determination of the central bank to reshape the credit card business in the field of consumer finance.
It is worth mentioning that the Supreme People's Court recently promulgated the Provisions on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases, hereinafter referred to as the Provisions, which will be implemented from now on. The "Regulations" clarify the upper limit of judicial protection of private lending interest rates based on four times the quoted interest rate LPR in the one-year loan market. At present, the quoted interest rate of one-year loan market is four times 15.4%. It can be found that the current bank credit card overdraft interest rate is higher than the upper limit of private lending interest rate. Whether the above provisions apply to licensed financial institutions such as banks has been controversial in the industry. In this context, what impact does the marketization of credit card overdraft interest rate have on banks? Will the bank adjust the overdraft interest rate? In this regard, soochow securities's chief banking analyst said that commercial banks are not expected to raise interest rates on a large scale, but may raise interest rates for some customers with poor risk performance, so as to achieve the matching of risks and benefits. Some banks may lower the price of high-quality customers to break through the previous lower interest rate limit, but the interest-bearing assets of high-quality customers are relatively low, so the actual impact is expected to be limited. Generally speaking, the retail banks of the head office can price the credit card business more flexibly and benefit from the marketization of interest rates.