Analysis On The Profit Pattern Of Credit Card Business In China’s Commercial Banks

As one of the most important credit products and terms of payment,credit card isbecoming more and more prevalent in many fields of the daily life.Credit card plays asignificant role in stimulating the national consumption,developing the retail banking andexpanding the income of commercial banks.Credit card was born in the UnitedStates.Because of the limitations of consumption concept,the legal system and the level ofeconomic development,the profit model of our credit card is still in the exploratory phase.Due to the low profitability,only a handful of banks are able to profit.Effectivemanagement of the cost and income,reasonable development of the profit model and bigamplification of profit have became the most emergent problems of our banks.On the basis of comprehensive analysis of the banking status at home an abroad,wecompare the profit pattern of China,America and Korea.Using the typical profit pattern ofZS Bank, we analysis the disadvantage of our profit model from two angels of income andexpenses.At last,the article discusses the optimization strategy of the profit model andgives some suggestions to develop the capacity of credit card profit of commercial banks inChina.