China's Commercial Banks To Credit Risk Analysis And Countermeasures

Since reform and opening up, China's economy has developed rapidly, the purchasing power of residents has continuously enhanced, the foreign exchanges have become increased frequently. On comprehensive consideration of domestic economic development and demographic status, the credit card business in China has great potential for development. The profit space of traditional banking business is being continuously compressed circumstances; the credit card business gradually becomes the highlight of new development for domestic commercial banks. With the development of the credit card business in the country, the card-issuing institutions have accumulated some management experience, and also have a certain amount of risk management capability, but Looking at the development course of the domestic credit card business, it did not achieve the desired results, the credit card business risk management still exist many problems which have to be resolved, how to learn effectively from foreign advanced experience and how to establish a risk management system with China's practical situation to protect healthy and stable development of commercial bank credit card business, become the focus of the financial sector. Therefore, the establishment of sound risk management mechanism and creation of efficient risk management methods have great practical significance for China's commercial banks to resolve the risk of credit card business.This paper summarizes the origin of the credit card and the development course in China, analyses importance of the credit card business development for China's commercial banks and lists specific methods of credit card risk management at first; and then, based on the development status of China's credit card, from a macroeconomic environment, the credit card business participants and technology, analyses the reason of domestic credit card business risk, sums up the foreign advanced experience of credit card risk management, proposes strategies and recommendations of credit card business risk management in the different angles from the government, issuing banks and special businesses and cardholders to improve the internal risk management of credit card business, to regulate daily management of special customers, and to establish systemic management measures on the all aspects of credit investigation , credit, credit granting , overdrafts and collection against credit card holders; finally prospects the broad future of credit card development.We should see that the credit card business is a double-edged sword with both profit and risk. If the relationship between risk management and business development can not be balanced, it will bring negative effect to credit card development, even cause the economy depression and social turbulence.