Xin Lang Cai Jing·2025-09-25 04:38Core Viewpoint - Recent adjustments by some joint-stock banks to credit card overdraft interest rates signal a potential shift towards market-oriented pricing in the credit card sector, breaking the previous upper and lower limits of daily interest rates set at 0.035% to 0.05% [1][3]. Group 1: Changes in Credit Card Overdraft Rates - Everbright Bank announced an optimization of its overdraft interest rate, changing it from a fixed range of daily interest rates of 0.035% to 0.05% (annual rates of 12.775% to 18.250%) to a more flexible model [2]. - Prior to the adjustment, Everbright Bank's credit card overdraft interest rate was consistently set at 0.05% [2]. - The new dynamic adjustment will allow interest rates to potentially fall below 0.05% based on customer creditworthiness and usage [2]. Group 2: Industry Context and Historical Background - The People's Bank of China relaxed the management of credit card overdraft interest rates in 2021, yet most banks maintained the 0.05% rate until now [1][3]. - Historically, credit card overdraft rates have transitioned from regulation to deregulation, with significant changes initiated by the central bank in 2016 and further reforms in 2020 [3]. - The recent move by Everbright Bank is seen as a pioneering step in exploring market-oriented pricing for credit card overdrafts, which could influence the broader banking industry [1][3]. Group 3: Expert Insights - Credit card expert Dong Zheng noted that the reduction in overdraft rates may have limited impact on customers who can repay in full but will alleviate the repayment pressure for those unable to do so [1][3]. - The shift towards personalized pricing strategies reflects a changing customer management philosophy within banks, emphasizing the importance of retaining customers who may not be able to repay in full but are willing to [3].