Cash Withdraw From Credit Card As An Informal Finance

An important feature of the local financial market in Wenzhou is that the coexistence of the bank-based modern financial market and the traditional private lending market,and the financial market is one of the most significant dual financial structure in China.Commercial bank credit cards play an important role under this significant dual financial structure.More and more cardholders take credit cards as a means of financing,because small and medium-sized enterprises and self-employed entrepreneurs are difficult to get bank loans.This paper analyzes the cash withdrawal behavior in the transaction details of credit card holders in Wenzhou,and finds that the cash withdrawal behavior of the credit card can ease the credit constraints and reduce the overdue risk on cardholders,thus increasing the bank earnings.