Domestic Commercial Banks To Credit Risk Management Study

Since 2003,the credit card market of China has developed from a stumbler to an active market with a circulation of more than 90 millions, and it shows a fast increase like a blowout. The transfers of stratagem in the commercial banks make the credit card a hotspot which every bank pursues, but the particularity of the managing risks with the card itself and the excessive marketing with the fast increase of the circulation all challenge the profitable ability of every bank' credit card business. It makes the risk management of Chinese credit card a focal problem which the domestic experts pay attention to continuously. How to deal with the risk of credit card in the new situation becomes a subject which needs studying.Starting from risk types, this paper analyses the characters and theories of the credit card risk. It reveals the idea, the purpose and the significance that the risk management should follow . Then the paper analyses the risk management status of domestic market, points that the main problem are: unreasonable organizational structure, conservative idea, inadequate technologies and talents. In the external environment, the imperfect of the laws & regulations and the social credit system, brings a lot of impact to the level of risk management, followed by comparing the experiences of America and Taiwan. Then this paper constructs a credit card business risk management system for the issuing bank, it contains internal system of risk management and external environment of risk management. The former contains three factors: Internal environment of risk management, Process of risk management, Technology of risk management. We propose corresponding solutions for the shortcomings of the domestic risk management through the perspective of external environment, internal environment, internal process and technology.