Research For The Price Of Bank Card In Commercial Banks

Along with economic flourish and financial reform deep turning, society's request to the function of bank has changed greatly. From the commercial bank management angle, the intermediary business income presently becomes one of the most important income sources of a commercial bank. The intermediary business income even already exceeds 50% in the general income in a few international commercial banks. It can be inferred that the intermediary business already becomes an item pillar business of the modern commercial bank. Among the intermediary business carrying out in commercial banks, Bank card develops swiftly. Bank card is an implement with the function of consumption, transfer, and cash, which is issued by commercial banks. Bank card business will link the card holder, the bank and the merchant together. The use and extension of Bank card are one of the most significant businesses of finance innovation at the modern times.The main body of this thesis is from the literature of Bank card business, then it brings forward current price in a basic way. It studies the current price is rational or not. If not, it needs to be priced again. This thesis studies the rationality of current price mainly from two aspects. Firstly, the banks abroad have charged the bank card business for many years. The banks abroad have charged the bank card business for many years. The domestic commercial banks begin to charge it now, and the rate is from low to rational. Secondary, information asymmetry exists between the commercial banks and the customers. The customer is risk evaded, so his reasonable choice is to unceasingly decrease the price of intermediary business product. Then the current price is below the average price gradually. Some products of high quality are ejected from the market. From the two aspects above, we can conclude, the price of bank card business in domestic banks is on the low side. It needs a rather rational price method.To make the price also needs to consider three factors:1. Whether the present price making right is scientific or not.2.the factor which can effect the price.3. how to price.The commercial banks should have the right to price the Bank card business. Price is the core of market competition, and is a basis on which enterprise rely for existing and developing. To face economy integration and the challenge of WTO, it is no time to delay expanding the price making right expanding in domestic commercial bank product. The purpose of commercial bank is to take gaining a profit, only commercial banks their selves have the ability to decide what the value of the service is.The factors affecting price are as follows:1. Cost. In Economics, especially as such monopoly, the price is decided by the equilibrium quantity and supply. The equilibrium quantity is decided by the marginal cost and marginal revenue. So cost ought to be one of the most important factors affecting the price. The cost constitutes of fixed cost and variable cost two parts. The cost which should be compensated are: material cost (fixed cost), which is consisted of the cost of business lieu and shared device, equipment cost, system upkeep cost, and etc.2. Manpower cost (variable cost).include: The product develops personnel cost, Product sells personnel cost, service people cost, and etc.3.risk cost (variable cost). According to risk and revenue matching principle, the commercial bank provides this kind of intermediary business products should gain risk reward. 2. The demand. The demand is determined by the budget line and indifference curve. The demand of Bank card service (such as the issue quantities of Bank card, the trade money of Bank card) associated with many variables, such as per capita GDP, per capita deposit of cities and towns. Taking data from 1990 to 2004 as a sample, the thesis analyzes the issue volume of Bank card, the traction of Bank card with SPSS linear regression process. It obtains the main factors of the Bank card are: GDP, deposit, economic structure and so on. 3. The market. When the bank prices its products, it should take the market into consideration. Bank card business can't be separated from China Unionpay, so we need to analyze the market characteristic of China Unionpay. China Unionpay meets cost subaditivity, so it is classified into the nature monopolist. From centralization, the commercial banks also belong to the monopolists. Judging from the current distribution of bank card business rate, the state owned commercial banks and China Unionpay gain the benefit. So the commercial banks and China Unionpay are the benefit aggregate. They have the same profit target, and become a larger-scale monopoly industry.There are three price strategies: price according to cost, price according to competition, price according to distinction and price according to relationship.