The Research On The Risk Control Of Commercial Bank Credit Card Issuer

Credit card business has become a new profit growth point of commercial banks this year. Credit card industry in China has just started recently, but demand and supply of the market were tested for their "blowout-style" development this year.The credit card industry of China is a bigger and bigger piece of cake, and of great potential. With China's accession to the WTO and gradually begun to enter the post-financial liberalization process, standardization stage, the commercial banks in China will face fierce competition with foreign banks,whose credit card business is already somewhat immature.However, there are many inadequacies in China's commercial banks to credit risk management including the card issuer management system is not perfect, credit risk evaluation of technical backwardness and so on. In order to make the commercial banks in China adapt to the financial system quickly in liberalized post-WTO environment,we must reinforce credit risk control and explore new methods. The contradiction between the surge in the number of credit card applications that are the profits arising from growth, and the bad debt losses arising from lagging individual credit risk assessment techniques make the commercial banks realize that if they want to hold market share as quickly as possible, they must strengthen the risk control of the credit card issuer and to find a balance between cost and accuracy of risk identification method. Address this need this paper constructed an individual credit risk assessment model based on Logistic regression analysis for commercial banks in China which provide a highly efficient method of credit card approval. At the end of the paper it provides practical suggestions through the successful experiences and failures contrast of developed countries combined with model results to commercial bank credit card issuer.This study mainly consists of the following five sections:PartⅠIntroduction describes the research background of this article, significance and methods,as well as innovative points and shortcomings of the domestic and international research on risk management, credit cards reviewed.PartⅡdescribes the risk control of the commercial bank credit card status, and the bloom of U.S. credit card industry as well as causes of the performance, then the whole story of South Korean credit card crisis and the causes. Compared to reference, try to find a suitable development strategy of China's credit card industry.PartⅢdescribes the major credit rating model for risk management applications,including traditional econometric evaluation techniques and neural network analysis techniques. And clarify the advantage of the Logistic Regression Model in evaluation of credit card applicants' credit rating.PartⅣestablishes credit risk evaluation model based on Logistic regression model.First discuss the feasibility of Logistic regression models on evaluate of credit risk, then establish the model and test its validity by empirical analysis, and finally explain the model with reality.PartⅤmakes recommendations on credit risk management of commercial banks credit card issuer based on the credit risk evaluation model.PartⅥSummary and Prospects...