The Study On The Credit Card Risk Management Strategies Of Chinese Commercial Banks

According to the joining commitment of WTO, China supported foreign banks to develop their business in November 2006. The foreign banks will provide a complete finance service for the Chinese. The monopolization of Chinese financial system was broken.But the discussion which CBRC has discussed for 4 years with PBC had come to an agreement finally about the credit card. The Bank Card Management Regulation is about to be promulgated and put into practice in June 2007. The regulation will cancel the upper limited amount of 50,000 RMB for personal credit card currently. The regulation will allow foreign banks and professional credit card companies to issue RMB credit card. This will influence credit card industry of Chinese commercial bank greatly.And the corresponding is that our country credit card risk management theories fell behind western countries. The core problem of developing credit card is to use the advanced technology to control the credit card risk. Under this background, the paper designed a framework of credit card risk management and put forward a series of management strategies.The paper is divided into four parts: the first part is the foundation of credit card risk management which mainly introducing credit card and its operation process, credit card risk identifying and the cause of credit card risk; the second part analyzes the present condition and the existent problems of Chinese commercial bank's credit card risk management; the third part mainly applied controlling as the foundation theories to setting up a research framework of credit card risk management, and analyze the case of GDB's credit card risk management; the fourth part is the conclusion of the paper, which puts forward management strategies of credit card risk management.