Data Mining In The Bank's Credit Risk Management And Empirical Research

Since China joined the WTO, for the high profits and the temptation of huge market space, our consumer credit business have abstract the major commercial banks, and they would gradually increase business investment, moreover China has entered a rapid development stage of credit cards. However, South Korean credit card business has a short-term prosperity. The problem of the quit is because of them ignored the risk management and control. The year of 2008,credit crisis swept the global financial market. The credit risk has been the most important risk in finance market.Along with the establishment of China Postal Savings Bank, its scale has become the fifth largest state-owned commercial banks. It will be extend the business areas from debate to the assets kinds. And Personal credit card business also must be the point China Postal Savings Bank focus and marketing on. With the rapid development of credit card business, there will be a sharp increase in the number of credit card applications, banks can not continue make decision dependent on original manual analysis and review of the applications, but need an automated system. Credit score is the system based on the theory of this. Credit scoring is the method distinguishes the each character group, when they unable to identify the characteristics of the group in overall can only understand the characteristics of the relevant group.Data mining is the process that extract the information and knowledge which hidden in them that people do not know in advance with potential value, from a large number of incomplete, noisy, fuzzy, random data. Data mining techniques mining and generate new knowledge by highly accurate and highly reliable means from the massive data, sharp the strong scientific basis for decision making. Enterprise use the data mining technology, can fully understand the customer's information, predict the future, prevent risks, and provide the most effective basis for business decisions.Data mining is the main measure of credit evaluation.The article combined the technology of data mining and credit card business of China Postal Savings Bank branch in Hubei Province, established the credit evaluation models, and made the test of effectiveness through empirical research by the actual data. The same time, with the existing management experience on credit card issue at home and abroad,the article conclude the solution, that based on the data mining and use the credit evaluation models,for the China Postal Savings Bank branch in Hubei Province Credit card applicants issuing management system..