Individual Customers Of The Commercial Bank Credit Card Risk Management Studies

Credit card business has developed these years as a new profit growth point of commercial banks. As China's financial liberalization and standardization of procedures speeding up, China's commercial banks and foreign credit card business bodies will face fierce competition. In addition, China' s commercial banks on credit risk management have many inadequacies, such as not perfect issuing bank risk management system and credit risk assessment techniques backward. In response to these problems, to ensure an open environment to quickly adapt to the sustainable development, China's commercial banks need to develop a new method of credit risk control. Especially in the card-issuing areas, state-owned commercial banks generally face the following dilemma:on the one hand, the number of applicants by credit card the potential increase with profit growth, on the other hand there is no better risk assessment technology. To obtain the profits, commercial banks need to strengthen credit risk management with the appropriate method of risk identification. The paper builds a Logistic regression model to provide an efficient method of credit risk assessment audits. Combination of model results and experience of developed countries, it put forward reasonable proposals on credit risk management for commercial banks.This study is divided into the following six sections:Part one introduces the concepts of credit cards, the origin and characteristics of credit cards, business model, business development, motivation and risk classification, as the basis for further analysis.The second part describes the risk control status of commercial bank credit card in the United States. And the paper finds reference and strategy in China's development.The third part describes the overall credit risk management, internal and external management environment and the overall risk management process in detail on this basis, to form the overall credit risk management framework.The fourth section describes the mainstream of the credit evaluation model in the application of risk management. By comparing, it is confirmed the advantages and feasibility of Logistic regression models. Modeling and then testing validity by empirical analysis with the final interpretation of the empirical results.The fifth part put forward measures to improve credit risk management. Viewing the problems and shortcomings, the paper proposes effective countermeasures to implement risk management system. Based on the established model, reasonable and feasible Recommendations are proposed.Part six is the summary, which concludes the paper content and aspects that need further improvement.