Xinhua News Agency Beijing, July 7th Question: New credit card regulations are issued These regulations are related to you and me
Xinhua News Agency reporter Li Yanxia
China Banking and Insurance Regulatory Commission and People's Bank of China 7th issued the "Notice on Further Promoting the Standardized and Healthy Development of Credit Card Business", which severely rectified the chaos in the credit card market and effectively protected the legitimate rights and interests of financial consumers. This new regulatory regulation will have an important impact on your and my card opening and use.
standardizes the charge for credit card interest fees and
credit card business charges, including annual fees, handling fees, interest, liquidated damages, etc. In actual operations, some banks have problems such as one-sided publicity of low interest rates and low fees, collecting interest in disguise in the name of handling fees, and blurring actual usage costs.
In this regard, the notice requires banking financial institutions to effectively improve the standardization and transparency of credit card interest fee management, strictly fulfill their interest fee explanation obligations in the contract, and demonstrate the highest annualized interest rate level in a clear manner.
installment business is an area where credit card business has many "routines". When cardholders swipe their cards to spend, they often receive suggestions from bank installments. The words "interest-free" and "zero interest rate" are heart-warming. But in fact, banks usually charge a certain handling fee for installment repayment business.
notification requires that banking financial institutions must clearly display all interest and fee items, annualized interest rate levels and interest and fee calculation methods that may arise in installment business on the homepage of the installment business contract (agreement). When displaying the cost of using funds collected by installment business, the interest should be adopted uniformly and the handling fee should not be adopted.
notice also requires that banking financial institutions should clarify the minimum starting amount and maximum amount limit for installment business; they shall not apply for installment balances again on installment balances; the installment business period shall not exceed 5 years. In addition to strictly standardizing interest fee collection, the notice also clearly requires banks to continue to take effective measures while complying with the law and effectively covering risks, and actively promote a reasonable decline in credit card interest fee levels.
Long-term Sleep card ratio shall not exceed 20%
In recent years, in the rapid development of credit card business, some banks have blindly pursued market share, abused card issuance, repeated card issuance, etc., resulting in disorderly competition and waste of resources.
notice puts forward strict regulations on card issuance management, requiring banking financial institutions not to directly or indirectly use card issuance volume, customer number, market share or market ranking as single or main assessment indicators. Strengthen dynamic monitoring and management of sleep credit cards. The proportion of long-term sleep credit cards with no active transactions for more than 18 consecutive months and the current overdraft balance and overpayment payments of is zero shall not exceed 20% of the total card issuance of this institution at any time. Banks exceeding this proportion are not allowed to issue new cards.
"In recent years, many banks have actively transformed into retail business, and credit cards as asset businesses have been generally used as entry point and focus. However, in the process of business development, a management model that simply uses card issuance and customer volume as assessment indicators has also emerged, resulting in short-term business." Zeng Gang, director of Shanghai Financial and Development Laboratory, said.
Relevant department head of the China Banking and Insurance Regulatory Commission said that in the future, the limit standards for long-term sleep credit cards will also be dynamically lowered, and the industry will continue to urge the industry to reduce the sleep card ratio to a lower level.
Setting the upper limit of the total credit limit for a single customer
Over-creditation is also a high-income problem in the credit card field. Faced with fierce market competition, increasing credit limits is usually a means for banks to compete for customers.
notice requires banking financial institutions to reasonably set the upper limit of the total credit limit of a single customer and include it in the unified management of the customer within all credit limits of the institution. When approving credit limits and adjusting credit limits, the accumulated credit limits of credit cards from other institutions should be deducted. Dong Ximiao, chief researcher of China Merchants Financial , said that some cardholders "maintain cards with cards" and illegal cash out issues need to be paid attention to. Commercial banks should reduce the long credit , strictly control excessive credit, and prevent credit card debt risks.
pilots online credit card business
to rectify chaos, and notify gives full space for credit card business innovation. It is clearly stated that innovative models such as online credit card business will be explored through pilot projects and other methods in accordance with the principles of controllable risks, safe and orderly.
"Developing online credit card business will become an important attempt for commercial banks to deepen digital transformation and accelerate the deep integration and innovation of finance and technology." CIO Gao Feng, chief information officer of the China Banking Association, said that the key link in carrying out online credit card business lies in remote face-to-face signing. We should do a good job in screening target customers, remote video technical support and online business processes.
It is understood that the regulatory authorities will follow the high-quality development orientation, give priority to the people's service recognition and trust, consumer rights protection and petition complaint requirements, and have prudent and strict compliance with business philosophy and risk control. All rectification work has reached regulatory indicators to participate in the pilot.
