What is the profit model of credit cards?
1. Loans,
2. Banking insurance
3. Sales of wealth management fund products,
4. Financial equipment Sales,
5. Financial intelligent terminal business consumption profit,
6. Hedging business,
7. Bill business, etc.
The profit ratio of most banks in China is: 30% from loans, 10% from bank insurance, 10% from sales of wealth management fund products, 5% from sales of financial equipment, 30% from consumption of financial intelligent terminal business, and 5% from hedging business , bill business 10, etc.;
The profit ratio of foreign banks is: loans 15, banking insurance 15, sales of financial fund products 15, sales of financial equipment 10, financial intelligent terminal business consumption profit 35, Hedging business 5, bill business 5, etc.
Banks are the product of a commodity currency economy that has developed to a certain stage. Its emergence can be roughly divided into three stages:
1. The currency exchange industry and exchangers emerged.
2. With the addition of currency custody and payment services, the currency exchange industry has evolved into a currency operation industry.
3. Concurrently engaged in currency custody, collection and payment, settlement, lending and other businesses. At this time, the currency exchange industry developed into the banking industry.
Extended information
Article 2 The commercial bank referred to in this Law refers to a bank established in accordance with this Law and the Company Law of the People's Republic of China to accept deposits from the public and issue Corporate legal persons that handle loans, settlement and other businesses.
Article 3 Commercial banks may engage in some or all of the following businesses:
1. Taking deposits from the public;
2. Granting short-term, medium-term and long-term loans;
3. Handle domestic and foreign settlement;
4. Handle bill acceptance and discount;
5. Issuance of financial bonds;
6 , acting as an agent for issuance, redemption, and underwriting of government bonds;
7. Buying and selling government bonds and financial bonds;
8. Engaging in inter-bank lending;
9. Buying and selling , acting as an agent for buying and selling foreign exchange;
10. Engaging in bank card business;
11. Providing letter of credit services and guarantees;
12. Acting as an agent for payment collection and payment Insurance business;
13. Provision of safe deposit box services;
14. Other businesses approved by the banking regulatory authority of the State Council.
The business scope shall be stipulated in the commercial bank's articles of association and shall be submitted to the banking regulatory authority of the State Council for approval. Commercial banks may engage in foreign exchange settlement and sales business with the approval of the People's Bank of China.
Article 4 Commercial banks shall take safety, liquidity and efficiency as their operating principles, implement independent operations, bear their own risks, be responsible for their profits and losses, and exercise self-discipline.
Commercial banks conduct business in accordance with the law and are not subject to interference by any unit or individual. A commercial bank shall bear civil liability independently with all its legal person property.
/baike.baidu.com/item/Bank/392719#3_1"target="_blank"title="Baidu Encyclopedia - Bank" Baidu Encyclopedia - Bank
/baike .baidu.com/item/Law of the People’s Republic of China on Commercial Banks/4497407?fr=aladdin"target="_blank"title="Baidu Encyclopedia—Law of the People’s Republic of China on Commercial Banks"Baidu Encyclopedia— —Commercial Banking Law of the People's Republic of China
What is the average return on assets of credit cards?
The annual interest rate of credit cards is generally around 9 to 20. Generally, handling fees are charged based on the number of installments, and no interest is charged. If you use a credit card to withdraw cash, interest is generally charged at a daily interest rate of 0.05%, and compound interest is calculated monthly, but the annual interest rate does not exceed 20%.
According to Article 7 of the "Regulations on the Supervision and Administration of Credit Card Business of Commercial Banks": A credit card refers to a credit card that records cardholder account information, has bank credit lines and overdraft functions, and provides cardholders with relevant banking services. All types of media. Credit cards stipulated in the relevant laws of our country ("Interpretation of the Standing Committee of the National People's Congress on the Provisions on Credit Cards of the People's Republic of China and the Criminal Law of the People's Republic of China") refer to credit cards issued by commercial banks or other financial institutions with the functions of consumption payment, credit loans, and transfers. An electronic payment card with full or partial functions such as settlement, cash deposit and withdrawal, etc. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is CreditCard.
Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date (BillingDate).
Credit card annual interest rate
Annual interest rate = installment handling rate / (number of installments 1) 24 = single installment handling rate number of installments / (number of installments 1) 24, the most common The handling fee of 7.2 for 12 periods is equivalent to the annual interest rate of 7.2/(12 1) 24=13.29.
ICBC’s handling fee of 3.58 for 12 periods, the annualized interest rate is 6.61, which is equivalent to 1.1 times the one-year loan benchmark interest rate of 6.0, and is charged in installments of 0.0358/1324=0.06609=6.61.
If the first installment is collected, the annualized interest rate should be divided by (1-installment fee). The initial payment is 0.0358/1324/(1-0.0358)=0.06854=6.85.
Influencing factors:
Central Bank’s policies
Generally speaking, when the central bank expands the money supply, the total supply of loanable funds will increase, and the supply will be greater than If the demand is high, the natural interest rate will fall; on the contrary, if the central bank implements a tightening monetary policy to reduce the money supply, the supply of loanable funds will exceed the demand, and the interest rate will rise accordingly.
Price level: The market interest rate is the sum of the real interest rate and the inflation rate. When the price level rises, market interest rates rise accordingly, otherwise real interest rates may be negative. At the same time, due to rising prices, the public's willingness to deposit will decrease while the loan demand of industrial and commercial enterprises will increase. The imbalance between deposits and loans caused by loan demand being greater than loan supply will inevitably lead to an increase in interest rates.
Stock and bond markets: If the securities market is in a rising period, market interest rates will increase; otherwise, interest rates will also decrease relatively speaking.
International economic situation: changes in a country's economic parameters, especially changes in exchange rates and interest rates, will also affect the fluctuations of interest rates in other countries. Naturally, the rise and fall of the international securities market will also create risks for the interest rates faced by international banking business.
How to make money with bank credit cards? What are the sources of income?
1. Annual fee:
Before 2005, annual fee income was a high proportion of fixed income source, once reaching about 55% of credit card income. However, many banks have no annual fee policies, which makes the proportion of annual fee income show a downward trend year by year.
2. Merchant commission:
When a customer purchases something with a credit card, the merchant must pay a certain percentage of the transaction amount to the bank, which is also the main part of the credit card revenue. A person in charge of the credit card center of a commercial bank revealed to reporters: "According to the default regulations of trade associations and UnionPay, there is a fixed standard for the handling fees charged to merchants for credit card purchases at POS machines."
3. Interest:
Interest is composed of cash withdrawal fees, cash withdrawal interest, minimum repayment interest, etc., and accounts for a very important part of credit card income
4. Cash withdrawal and punitiveness:
The former refers to the handling fee paid for withdrawing cash at the counter or ATM machine, which stems from the bank’s purpose of promoting card consumption and preventing risks; the latter refers to the fees for excessive credit card overdrafts. The penalty paid by the bank is to compensate for the risk losses caused to the bank due to the cardholder's default. These two parts account for a relatively small proportion of credit card revenue.
5. Other value-added services:
For example, the fees paid by cardholders to purchase goods and pay in installments are actually similar to turning interest income into an intermediary business. The essence remains the same, but It is conducive to expanding consumption and controlling risks.
How to calculate interest on Bank of China credit card?
The overdraft interest on Bank of China credit card is calculated based on the actual overdraft cash withdrawal amount and the actual number of days in arrears from the transaction recording date. The overdraft interest rate is The daily interest rate is 5/10,000, and compound interest is calculated monthly.
The above content is for your reference, please refer to actual business regulations.
If you have any questions, please feel free to consult Bank of China’s online customer service.
You are sincerely invited to download and use Bank of China Mobile Banking APP or Bank of China Cross-border GOAPP to handle related businesses.
That’s it for the introduction of bank credit card income.