Gansu Branch Of Agricultural Bank Of China Credit Card Installments Risk Management

Credit card installment business refers to when cardholders use credit cards to pay for a large number of money, the bank will provide the money they need to the commercial tenant (goods or service supplement) in one time, and recall the money from the cardholder’s account according to their application. As the supervise for finance market becoming more and more strictly, and traditional financial market facing an increasing number of challenges, credit card installment business has become the pillar operation for every bank because of its high profit. At the same time, government has published polices to encourage purchase, which will also benefit this kind of trade. However, bad loans, default in the payment and many other not good phenomenon have already appeared in the market. What worse, they even become professional and intelligent, adding the press to the risk management. Under the condition of meeting the increasing requirement, how to control the risk of credit card installment trade and maximize the profit of bank is the most important problem the agricultural bank are facing.Combined with the Agricultural Bank of Gansu province, we use the document analysis method and case analysis method, which are the basic theory and method in finance, to analysis the problems and challenges in agricultural credit card installment trade. We also reference the advanced method from other countries and banks to give some suggestion for the credit card installment trade of Agricultural Bank of Gansu province.In this paper, we fist figure the connected definition of this research---installment trade risk and installment trade risk management. On basis of the definition, we analysis the credit card installment trade in Agricultural Bank of gansu province and the problems they had. Finding the shortage and problem in their operation and give the key point of this paper, which are the suggestion for the bank to improve their management level of the installment trade: making better use of the all-around risk management theory, using COSO internal framework system to enhance their internal control system, methods to improve the risk management.The new insight of this paper is to analysis and research the Agricultural Bank of Gansu province’s credit card installment trade systematically. At the same time, provide some ways regarding to risk management and dynamic management, which connects the theory and practice. The shortage of this research is that the key point is not potent, and the analysis for the problem is not profound enough, which should also be improved in the future research.