Mei Ri Jing Ji Xin Wen·2025-09-25 13:16Core 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 set by regulations [1][4]. Summary by Sections Credit Card Interest Rate Adjustments - Everbright Bank announced an adjustment to its credit card overdraft interest rate, changing the standard from a daily rate of 0.035% to 0.05% (annualized rate of 12.775% to 18.25%) to a new range of 0% to 0.05%, effective from September 29, 2025 [2]. - Prior to this adjustment, the bank's credit card overdraft daily interest rate was consistently set at 0.05% [2][3]. Market Reaction and Implications - Industry experts view this move as a significant signal that banks are beginning to explore market-driven pricing for credit card overdraft rates, which could lead to more competitive offerings [4]. - The adjustment may primarily benefit customers who are unable to repay their credit card balances in full, as it could alleviate their repayment pressure [1][6]. Historical Context - The history of credit card overdraft interest rates in China shows a transition from strict regulation to a more flexible market approach, with the People's Bank of China lifting previous limits in 2021 [5]. - The initial regulatory framework set a maximum daily interest rate of 0.05% and a minimum of 0.035%, but these restrictions were removed to allow for negotiation between banks and customers [5]. Industry Trends - As the credit card industry shifts towards a focus on maintaining existing customer bases, personalized pricing strategies are becoming increasingly important for banks [6]. - The understanding of valuable customers is evolving, with banks recognizing that customers who cannot repay in full but are willing to pay back are also considered valuable [6].