The Upgrade Of Profit Model Of Credit Card Industry In China

With the continuous development of China economy, Chinese financial industry is rapid integration into the world economy. Financial disintermediation, interest rate marketization is approaching, foreign banks enter Chinese, China banking are facing increasingly complex competitive situation. In the traditional business and interest margin as the main source of income of the Chinese bank is facing reform and transformation of the problem. As a retail banking products, assets, liabilities, intermediate business functions, credit card has become an important product.The continuous development of China’s credit card industry, great changes in the last decade, has been deeply into everyone’s daily life. To make great contributions to society and economy, the credit card industry also faces enormous challenges. The whole industrial environment and industry norms and the development of credit card business does not adapt, still need to strengthen and improve. Types of credit card crime diversity, retrofit, showing a smart and industrialization trend, the pressure of risk management is increasing. The rapid development of emerging payment and the penetration of the Internet financial, is producing a great impact on the status and role of the traditional credit card payment and settlement of machine in the consumption credit. Credit card fees, interest is adjusted by the rules, it will seriously affect the credit card industry profitability.In this paper, through the construction of credit card business profits of the model, we preliminary analysis the relationship of the credit card business income and credit card issuance and use. Select the 9 banks that has a large card quantity as a representative, the credit card issuing cards, transactions per card, overdraft balance per card, the number of POS, the number of ATM as variable data, the fixed effect panel data regression estimation, commercial banks on the rate of return on net assets of econometric analysis, we found there is a positive role in driving obviously the number of credit cards in circulation, overdraft balance per card, the number of POS as the number of factors on commercial bank rate of return on net assets. We analyzed the credit card fraud impact on the revenue of credit card business, the credit card fraud losses didn’t cause great influence on commercial bank credit card business income at present, but the credit card fraud still needs the powerful control.According to this analysis, the opinions and suggestions on the credit card issuers in the credit card industry profit model upgrade to, while the government and regulators are put forward the corresponding opinions and suggestions.