A Study On Credit Card Risk Management Of Commercial Banks

Credit card is a global and modernized payment tool. Credit card makes it convenient and safe for credit card holder to consume, credit card can increase the sales of authorized merchant and credit card is an important source of profit to commercial bank. In many foreign commercial banks, the profit of credit card business is general exceed thirty percentage of total profit. So, the credit card becomes the core business for commercial banks. But, credit card is a new industry with high risk and high profit. Along with the total opening of the Bank Industry in china, the entrance of foreign banks will definitely make the credit card competition even more aggressive. The credit card business has also grown faster in China. On the other hand, the credit risk of bankcards has become more and more frequent, and related losses has also become bigger and bigger. The local banks should not ignore the potential risk. Banks should strengthen the risk monitoring in order to avoid repeating the credit card crisis that occurred in Taiwan. It is victory in the competition with foreign banks.We use the comparison analysis and qualitative analysis to study current commercial banks credit card risk management. Those comparisons include case studies, etc. We then proposed practical approaches to improve the risk analysis in China credit card market based on the comparison and analysis. Firstly, the article makes the analysis of the types and causes of the credit card risk, absorbs the research of the predecessors of the asymmetric information theory, analyses the causes of credit risk and describe the type of the credit card risk with the current work. Second it makes the analysis of the credit card risk control experience of United States and France and the credit card risk control lesson of Taiwan. Third, it describes the current situation of China's credit card risk control and finds out the reason for the existence of credit card risk to domestic credit card, clarifying the issue of China's credit card risk control. Finally, in order to strengthen risk prevention commercial banks, by learning from the advanced experience of foreign countries, the article comes up with the ideas of commercial banks credit card risk control, making the useful recommendations for the healthy development of the credit card industry.