China-Singapore Jingwei Client, January 12 (Song Yafen) Recently, the Central Bank issued the "Notice of the People's Bank of China on Promoting the Market-oriented Reform of Credit Card Overdraft Interest Rates", clearly canceling the upper and lower limit management of credit card overdraft interest rates. Credit card overdraft interest rates are determined by the issuer Determined through independent negotiation with the cardholder.

How does the liberalization of overdraft interest rates affect the bank's credit card business?

Will the overdraft interest rate fall?

What is the impact of this policy on other consumer finance companies?

　　The profit model of a credit card is interest + handling fee.

Cardholders do not need to pay any interest for repayment during the interest-free period after swiping the card, but after the interest-free period or cannot repay in full, the overdraft interest rate will be generated.

Previously, the upper limit of the credit card overdraft interest rate was five ten thousandths of the daily interest rate, and the lower limit was 0.7 times the daily interest rate of five ten thousandths. The estimated annualized interest rate was 12.775%-18.25%.

　　What are the main reasons for the central bank to liberalize credit card overdraft interest rates?

After the restriction is lifted, what impact will it have on the bank's credit card business?

　　In this regard, Guo Tianyong, director of the China Banking Research Center of the Central University of Finance and Economics, said in an interview with the Sino-Singapore Jingwei Client: “The central bank’s move is mainly to meet the requirements of interest rate marketization. It is of course a good thing for bank credit card business. Banks can There is more room and more independent pricing power to do this business."

　　Zeng Gang, deputy director of the National Finance and Development Laboratory, called it "supplementary reform."

According to Zeng Gang, the upper and lower limits for loans other than credit cards have long been cancelled, and market loan interest rates will begin to be linked to LPR in 2020.

Against this background, there is no reason for credit card loans to maintain a controlled range.

　　According to the Sino-Singapore Jingwei Client, the marketization of interest rates has long been planned by relevant departments.

In April 2016, when the central bank set the upper and lower limits of credit card overdraft interest rates, it clearly stated that it “established the overall idea of ​​step-by-step promotion of the marketization of credit card interest rates, set upper and lower limits on credit card interest rates, and fully implemented market pricing when the time is right”.

　　So, after the restrictions are lifted, will credit card interest rates fall?

Who can get benefits?

　　In this regard, Guo Tianyong said: "The rise or fall of interest rates mainly depends on supply. From the current situation, the cost of funds in the entire society is falling. Under this situation, there is no reason for the increase in credit card overdraft interest rates."

　　Zeng Gang believes that the removal of restrictions will definitely lead to an overall decline in credit card interest rates.

"The original interest rate range for credit card overdrafts is actually to help banks unify pricing and liberalize restrictions. Once competition starts, it will definitely drive bank credit card loan interest rates down and ultimately help reduce cardholders' costs. At the same time, for some people The decline may be more pronounced. For example, some banks prefer key customers, the bank may have more obvious interest rate concessions. In addition, the bank's customer service may also become better. It is equivalent to the marketization of credit card interest rates. Promote the reform of the credit card supply side."

　　Consumer finance companies, as a fast-growing type of enterprise in the era of financial technology, rely on their technological advantages and scenarios to attract a large number of consumer credit crowds.

After the release of bank credit card interest rate restrictions, what impact will it have on other companies in the consumer finance market?

　　Guo Tianyong analyzed that the liberalization of credit card interest rates does not necessarily affect the business of other consumer finance companies.

Because interest rates are only one aspect of consumer finance, consumer finance is also related to the scene.

Therefore, in the future, banks need to create consumption scenarios and increase customer stickiness to enhance their competitiveness.

　　Zeng Gang predicted that the cancellation will have an indirect impact on other consumer finance companies.

The stock of bank credit cards is very large. After the interest rate is opened, the bank may lower the interest rate for good customers, on the other hand, it may also use the upward space to become some lower-level customers.

This may drive down the loan interest rates of other consumer financial institutions.

The sinking of banking business may also indirectly enter the fields that other consumer finance companies originally cultivated.

Competition will also drive down the interest rates of this type of business.

　　However, Zeng Gang pointed out that theoretically speaking, the customer base of other consumer finance companies and bank credit card positioning are significantly different, so it remains to be seen how large the competitive space opens up.

(Zhongxin Jingwei APP)

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