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China 's Credit Card Credit Risk To Avoid

Posted on:2016-05-03Degree:MasterType:Thesis
Country:ChinaCandidate:S Y ChuFull Text:PDF
GTID:2206330461484646Subject:Economic law
Abstract/Summary:PDF Full Text Request
Credit card, originated from the clothing industry of the United Kingdom in nineteen eighties, spread all over the world with the rapid development of the global economy and productivity. Through fifty years’ development, it has been supported by more than 95% countries in the world. In twenty seventies, credit card, regarded as a modernized electric payment tool, was brought to China under the policy of reform and opening-up, and the rapid development of socialist market economy. It was widely developed through thirty years. However, the development of credit card in our country, which existed many problems, especially in the aspect of the credit risk elusion, still fell behind other developed countries due to the undeveloped economy of our country, the regional economic imbalance and the short credit card development history. Problems of trust losing in credit card in our country should not be ignored, which included lack of science in marketing management, serious product homogenization, large amounts of credit cards without using, high rate of bad debts and etc. To solve these problems, related industries and departments got ready to or had already been to take corresponding measures. "Credit reporting industry management regulations" and its related specifications, which were promulgated in 2013, were used to supervise the credibility and integrity of credit card, and had made great effects.However, to the current situation of our country, the discreditable phenomenon of credit card still exists and will exist for a long time. To deal with this phenomenon, we have done related researches and raised some correspondent proposals in this paper, which is composed of three parts: introduction, body text and conclusion. The body text covers Chapter 2 to 6, in which Chapter 2 presents relevant theories of credit risk, elaborating from the aspects of civil law and legal economics. Furthermore, the importance of spreading credit card and the necessity of supervising the credit risk of credit card are also explained in Chapter 2 with concepts of “Principle of good faith” and “efficiency”. Chapter 3 objectively describes the state of the art of credit card in our country under those explicit and accurate data from “the overall running conditions of payment system” issued by People’s Bank of China. Chapter 4 analyses the current situation more deeply than that in Chapter 3 with the considerations of three aspects, including defects in legal system, imperfects in social credit regulation construction and non-standard in bank behaviors. Specifically, in the view of law, the legal force of related regulatory documents is weak and those regulations are separated to each other, which makes it unable to provide a well support for running credit card in good faith; in the view of social society, the lack of good faith is one of the reasons for the frequent occurrence of credit card problems; in the view of the development of banks, unbalanced information, numerous deliveries of credit cards and little supervision in credit risk are important reasons for current situation of faith breaking in credit card. Chapter 5 refers some other countries’ experience in eluding credit card risk, including: "Basel agreement" being modified and improve for three time provides a reference of the whole supervision for the well development of Chinese banking; elusion experience in American, where credit card is well developed, is useful lesson to us. According to the discussions in the former chapters, Chapter 6 proposes three suggestions to restrict the behaviors of banks: a) improve and perfect the legal constructions both vertically and laterally; b) regular the social faith construction; c) complete detailed rules and auditing. Through the joint of the three, it is possible to promote the healthy and orderly development of the credit card business.
Keywords/Search Tags:Credit Card, Credit Risk, Evasion of Law, Supervise
PDF Full Text Request
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