Recently, the China Banking Regulatory Commission and the Central Bank issued the Notice on Further Promoting the Standardized and Healthy Development of Credit Card Business, pointing out that banking financial institutions should take effective measures to timely and accurately monitor and control the actual use of credit card funds. Credit card funds shall not be used for repayment of loans, investment and other fields, and it is strictly forbidden to flow into areas restricted or prohibited by policies.
Banks responded by monitoring the flow of credit card funds. Recently, the Credit Card Center of China Construction Bank issued the Announcement on Strengthening the Control of Credit Card Non-consumption Transactions, stipulating that credit card funds shall not be used in non-consumption fields such as house purchase, investment, production and operation.
"If you use this bank's credit card to conduct transactions in non-consumer areas, it may lead to transaction failure. Banks can take relevant measures including but not limited to reducing the credit line, stopping the card, and terminating the installment. " The Construction Bank emphasized in the announcement.
Compared with the regulatory requirements, CCB Credit Card Center has more detailed restrictions on the inflow of credit card funds. Among them, the real estate sector is the big one. CCB's announcement requires that transactions in real estate merchants, domestic real estate tax merchants, domestic real estate and time-sharing housing merchants are prohibited and controlled by customers: the single transaction amount does not exceed 30,000 yuan, the daily cumulative transaction amount does not exceed 50,000 yuan, the monthly cumulative transaction amount does not exceed 50,000 yuan, the semi-annual cumulative transaction amount does not exceed 50,000 yuan, and the annual cumulative transaction amount does not exceed 654.38+10,000 yuan.
In addition, it is not allowed to trade in investment and wealth management merchants, the daily cumulative transaction amount of domestic life insurance merchants shall not exceed 654.38+million yuan, and it shall not be used in domestic tobacco business merchants, the daily cumulative transaction amount of domestic tax payment merchants shall not exceed 654.38+million yuan, and the single transaction amount of other domestic wholesalers and building decoration materials wholesale shall not exceed 654.38+million yuan.
Previously, Minsheng Bank Credit Card announced that since March 3, 20231day, Baotong white collar, loan, cash installment and Guole installment-cash installment business will be included in the cash installment control line of Minsheng Bank Credit Card in batches to manage the use of funds for the control line.
In March this year, China Bank Credit Card stated that cardholders should not rent, lend or sell personal credit cards, and should not resell or buy credit cards and account information; May not be used for gambling, telecom fraud, illegal purchase of virtual currency, etc. Do not take cash or points through false transactions, illegal tools and other means, and do not use them for malicious arbitrage such as illegal purchasing; It shall not be used in real estate, securities, funds, wealth management, other equity investment, production and operation and other areas prohibited by supervision.
Affected by the epidemic and other factors, cardholders' willingness to use credit cards decreased significantly. What impact will this have on the credit card business?
"Under the influence of this year's epidemic, from the perspective of internal operations, credit card centers that have been deeply cultivating offline channels have been greatly affected, but the transformation of Internet customers has been successful. For example, credit cards such as Xingye and Guangfa Bank are not particularly affected, but overall, the slowdown in scale development trend is a consensus. " Ge Liang said.
From the external environment, residents are worried about the uncertainty of the future, and no debt, less debt and more savings have become important means to deal with uncertainty. "The volume of credit card transactions will be significantly suppressed this year. The credit cards of various banks will be differentiated in the process of transaction scale transformation and staging, and banks with anchored conversion rate indicators as their core business objectives will run ahead. " Ge Liang said.
According to the first quarter report of China Merchants Bank, the new non-performing loans increased by nearly 654.38+0.6 billion yuan year-on-year, mainly due to the policy adjustment at the time of overdue identification and the policy implementation of reducing overdue non-performing loans.
Ming Ming, chief economist of CITIC Securities, said that considering the negative impact of the epidemic on the economy, especially small and medium-sized enterprises, it is expected that the NPL ratio of consumer finance will increase. However, due to the experience in 2020, many credit intermediaries have raised the threshold for review, and it is expected that the NPL ratio will rise under control. In the future, such institutions should strengthen the qualification examination of credit supply while expanding customers; On the other hand, they can take the differentiated collection and securitization of non-performing assets to reduce losses.
This article is from International Finance News.
Related Q&A: Can Minsheng Full Currency Credit Card be consumed in China? Hello, yes, consumption abroad. All-currency cards are used in consumption abroad.