The Legal Regulating Of The Credit Risk

Along with the rapid economic development of China nowadays, as well as the dramaticchange of the society, the idea including the consumption concept is appearing. Redit cards asa new form of consumption which have been replacing the currency are enjoying their rapiddevelopment because people approve of the convenience of credit cards. At the end of thefourth season of2012, the number of the released credit cards is up to331million. Butfollowing the fast development of the credit card, some potential risks are approaching. Nowthe credit card risks involved in the subject are plural, specifically including the risk of theissuing bank, the risks of card holders and the risks in the specially engaged commercial units.The harm of Credit card risk, credit card cash, credit card fraud and malicious overdraft risk,for example, is enormous. They bring the dangers of security the principals, so it is of greatimportance to realize that the lack of legal regulation is one of the main causes of credit cardrisks.Now our country’s current situation in credit risk prevention and relative legal systemconstruction is comparatively backward. So this thesis is based on credit risk in our country’sstate of the adopted the combination of theoretical research and empirical analysis method,based on the type of credit card risk, while the causes of the risks are analyzed, and concludethe characteristics of credit risk in China, starting from the characteristics of credit risk in China, draws the experiences of credit card industry in developed countries, for the perfectionof the legal regulating of the credit risk in China.This thesis is divided into four parts, in the first part, the basic problems such as the risk ofcredit card and credit card are introduced. The concept of credit card is clearly defined in law.The main functions of the credit card include payment settlement function, the function ofcredit consumption, unsecured revolving credit, transfer and settlement function, reflection ofpersonal credit and other new functions. The credit card risks according to subjectclassification are classified to be the risks of the issuing bank and the risk of the cardholders’and special merchants’.Specific credit risk characteristics in our country include particularity,which specifically includes the breadth of the risk, the feature of concealment, dispersibility,strong dependence on the information technology, plurality of the accounts, the smallamount, the severity of the risk etc. The second part of this thesis analyzes the causes ofcredit risk. Because of different national conditions, the cause of credit risk in our countrypresents the particularity of its own. The third part draws lessons from foreign credit riskregulation, summarizes its successful experience, and provides the beneficial reference forour country’s credit card risk legal regulation.The last part introduces the characteristics ofrisk in our country and puts forward concrete measures of legal regulation. This paper puts forward legal regulations in regard with China’s national conditions and on the basis of therelevant observation, while proposes the legal regulating of the credit risk in our country.