Credit Risk Management And Control Of Amercian Credit Card

Credit card from its inception, after sixty years of development, now has becomean integral part of our daily lives as a payment tool, both in the United States, Europe,or the Asia-Pacific region, despite the national (regional) level of economicdevelopment, socio-cultural, payment habits are quite different, but in the moderncredit card payments in both the consumer plays an irreplaceable role. To adapt, tostandardize the operational behavior of the credit card, the cardholder interest insafeguarding and promoting healthy development of credit card payments, manycountries and regions have established an effective legal and regulatory system for thecredit card industry to build a strong security environment. China since the first creditcard inception, from small to large has gone through27Spring, has made remarkableachievements, credit cards have become the most frequently used Chinese residents ofnon-cash payment instruments, payment card networks have China’s payment systemis an important part of the credit card industry has become the vital interests of thepeople and the economic and financial order related industries. But the credit cardindustry from other countries the law of development point of view, this period shouldbe wary of credit risk is the most rapid expansion period. Based on credit riskmanagement theory combing and select the credit card business in the most developedareas of the United States for the study, found that the success of credit risk controland management relies on a rigorous and comprehensive credit risk managementsystem, including: market-oriented organizational structure, strategic enterprisemanagement system, intensive mode of operation, the smooth operation of the process,improve the legal and regulatory system, developed personal credit informationsystem and good credit culture environment in which the issuer’s internal control andmanagement the external environment with the issuing bank guarantee two conditions are indispensable. In China, the rapid development incompatible with the credit cardindustry are: industrial development of the legal system construction and internal riskcontrol management tools is still relatively lagging behind, how to regulate the use ofcredit cards and guarantee the smooth development of the industry is undoubtedly oneworth before us to think deeply issue. Through in-depth analysis of the riskmanagement of the credit card market situation, that the domestic card lineorganizational structure, management systems, business methods and operatingprocedures are present on some of the problems, resulting in expansion of credit riskexposure; from external credit environment, China has not yet established a soundThe credit card-related legal environment, industry and national regulatory regimespersonal credit system, and there are more serious lack of credit culture, which gavethe credit card issuer to bring potential risks. For the credit risk control andmanagement problems, this paper explores the economic, legal, cultural and otherpoint put forward a sound credit risk of credit control and managementcountermeasures and policy recommendations.