Core Viewpoint - The adjustment of credit card overdraft interest rates by commercial banks reflects a shift towards more refined operations in the credit card market, allowing for a potential reduction of the daily interest rate to as low as 0% [1][2]. Group 1: Changes in Credit Card Overdraft Rates - Everbright Bank has optimized its credit card overdraft interest rate standards, changing from a daily rate of 3.5% to 5% (annual rate of 12.775% to 18.25%) to a new range of 0% to 0.05%, with an approximate annual rate of 0% to 18.25% [1]. - The new interest rate structure will take effect on September 29, 2025, and will be dynamically adjusted based on the cardholder's credit status and usage [1]. Group 2: Market and Policy Implications - The adjustment is a result of both macro policy guidance and market demand, allowing banks to implement differentiated pricing based on customer credit status, enhancing risk pricing capabilities and adding flexibility to the consumer credit market [2]. - The People's Bank of China has removed the previous upper and lower limits on credit card overdraft interest rates, facilitating a more market-driven interest rate environment [2]. Group 3: Competitive Landscape and Strategic Responses - The removal of interest rate limits is part of the central bank's ongoing efforts to promote interest rate marketization, which aids in the effective allocation of credit resources [3]. - In a competitive consumer finance market, banks can leverage differentiated products to strengthen customer loyalty, such as offering customized interest rate discounts for different customer segments [3]. - The shift towards autonomous interest rates allows banks greater operational flexibility, potentially increasing credit card activity and optimizing asset quality through tailored interest rates for high-risk customers [3].