Research On Domestic Commercial Bank Credit Card Department A Profit Center Restructuring

Credit card business is increasingly becoming a major non-interest income ofdiversification and internationalization of major international banks and an importantsource of profit, such as Citibank and JP Morgan Chase Bank’s credit card businessincome is roughly one-third of their total profits. And the profit from credit cardbusiness of American Express and Diners Club International weights even more thanhalf of the company’s profits. However, our domestic credit card issuers can hardlyannounce their credit card business is profitable. Besides the basic principles ofmanagement, this essay focuses more on empirical research, analyzing thecharacteristics of traditional operations of the domestic commercial bank credit carddepartment and their main problems, the practical significance of the implementationof profit center. In the case study part, the essay takes the implementation of profitcenter restructuring of Z Bank’s credit card department as an example, developed aspecific restructuring plan, and concludes the expected achievements andshortcomings of its restructuring. Finally, this essay gave a detailed analysis ofChina’s commercial bank credit departments to promote profit center restructuring,made suggestions for these situations and those typical difficulties. Through this study,it is found that the construction of domestic commercial bank’s credit card profitcenter is still facing difficulties, but the implementation of the profit centerrestructuring is both in line with China’s commercial banks’ reform strategy and theinevitable choice to enhance the credit card business which could not be reversed.Completely changing the ideas in the process of reconstruction, gradually extendingthe full pilot, learned from the real market can realize the implementation of creditcard profit center construction.