In recent years, the Chinese economy has been experiencing continued decline, with overall decreases in both corporate and individual incomes, leading to a rise in the risk of overdue payments for personal consumption loans. According to recent data released by the People’s Bank of China, by the end of 2024, the number of credit cards and unified credit and debit cards in circulation had decreased by 80 million compared to the fourth quarter of 2022. While the number of credit cards has decreased, the total amount of overdue loans has surged.
On February 17th, the People’s Bank of China issued the “Overall Operation of the Payment System in 2024.” The data indicated that by the end of 2024, the number of credit cards and unified credit and debit cards in circulation was 727 million, representing a decrease of approximately 40 million from the end of 2023, a decline of 5.14%. The issuance of credit cards has seen a decrease for nine consecutive quarters. Compared to the fourth quarter of 2022 when the total number of credit cards issued was 807 million, there has been a cumulative reduction of 80 million cards.
Multiple banks ceased issuing co-branded credit cards throughout 2024, with Minsheng Bank, SPDB Bank, Huaxia Bank, and CITIC Bank announcing adjustments to credit card benefits.
A representative from a city commercial bank noted that in the past, banks offered a variety of credit card options, including fuel cards, airline cards, co-branded cards, and more. Many cardholders even held multiple types of credit cards from the same bank.
Not only has the credit card business been reduced, but several banks have also closed their credit card divisions.
Since the beginning of 2025, Industrial and Commercial Bank of China (ICBC) shut down its Pacific Credit Card Centers in Guiyang, Nanchang, Shenzhen, and Lanzhou. Additionally, Huaxia Bank, Inner Mongolia Bank, Ping An Bank, and Shanghai Rural Commercial Bank also closed their credit card centers or branch centers last year.
Furthermore, the transaction volume of China Bank’s credit cards has noticeably decreased. For example, by the end of September 2024, Ping An Bank’s accounts receivable for credit cards had dropped by 11.9% compared to the previous year. A similar situation was observed at CITIC Bank, with a 4.36% decrease in credit card loan balances by the same period.
As of the end of the third quarter of 2024, China Merchants Bank’s total retail loans grew by 3.95% compared to the previous year-end, but the increment was lower than in the same period. The combined balances of credit card loans and personal housing loans decreased by a total of 14.417 billion yuan compared to the previous year-end.
It is worth noting that China’s credit card overdue problems are becoming increasingly prominent.
According to a report by Sina Finance on February 19th, by the end of 2024, the total amount of overdue credit card loans unpaid for six months reached 123.964 billion yuan, an increase of 26.32% compared to 2023. Furthermore, the proportion of total overdue credit card loans unpaid for six months at the end of 2024 was 1.43%, a 0.3 percentage point increase from the previous year-end.
Additionally, according to a report by the Securities Times, in January of this year, the Credit Asset Registration and Trading Center disclosed the latest data on non-performing loan transfers in the fourth quarter of 2024. The total amount of personal non-performing loans traded in 2024 was 158.35 billion yuan, a 64% increase year-on-year. Based on the data from the fourth quarter of 2024, personal consumption loans accounted for the highest proportion at 66%, followed by individual operating loans and credit card overdrafts.