Influencing Factor Research Of Credit Card Issuing Quantity

The financial crisis in 2008 made our country realize the serious defects of the export-led economic growth way. Since then, the state has carried out a series of macro-control measures to encourage domestic demand and to promote economic growth way changing to the demand-pull way. As a financial innovation, the credit card can transfer potential demand into real purchasing power, which plays an important role both in expanding domestic demand and in promoting the transformation of economic growth way. It has been 30 years since the first credit card born in China. Credit card has a significant influence both in the economy and in the Chinese people’s consumption habits. In 2013, the national total amount of credit card consumption reached 391 million and by the end of 2013, the annual consumption of the credit card in China had reached 13.1 trillion, while the per capita amount of credit card had only 0.29, which was far lower than that of developed countries. The higher credit card consumption shows the greater demand of consumers, and it reflects the more obvious effect on expanding domestic demand. It is known that the credit card issuing quantity has a direct effect on the level of credit card consumption. Therefore, under the current Chinese economic background, studying the influence factors of the credit card issuing quantity can not only lay a solid foundation for the healthy development of the credit card industry in China, but also has great strategic significance for the future Chinese economy.Based on the analysis of the credit card development both in China and in Jiangsu Province, the paper expounds the factors that affect credit card issuing quantity and their mechanisms of action. Taking the issuing quantity of credit card in Jiangsu province as the explained variable, the market interest rate, urban per capita disposable income, urban population, residents’ level of education and degree of opening to the outside world as explanatory variables, the paper uses multiple linear regression model to study the relationships between the explanatory variables and the explained variable. Research shows that:overall, the issuing quantity of credit card declines when the market interest rate rises, while the issuing quantity of credit card rises when the urban per capita disposable income, urban population, residents’ level of education and degree of opening to the outside world rise. According to the analysis of different cities in Jiangsu province, we also find that there are different sensitivities about credit card issuing quantity to the explanatory variables in different cities. The more developed cities have a stronger market interest rate sensitivity than the poorer cities, while the more developed cities have a stronger income sensitivity than the poorer cities at the beginning, but after a period of time, the income sensitivity becomes weaker. The more developed cities have a stronger urban population and degree of opening to the outside world sensitivity than the poor cities, while a weaker residents’ level of education sensitivity. On the basis of empirical analysis, we give some policy recommendations for the better development of credit card market.