The Research Of Commercial Banks Risk Management For Credit Card

Credit cards, as a new force of China’s banking business in recentyears, have been developing rapidly. However, due to the short history ofthe development, lack of experience of banks’ risk management and otherreasons, the commercial banks face greater risk.What is the difference between China and abroad in credit cardsbusiness? And what risks of credit cards do we face? How to measurethese risks? How to apply these measurements in risk management?Specifically, what risk management measures or processes should we take?How to improve the weakness? These problems all need to be studied andsolved.In this article, firstly, using comparative methods, I introducesystematically the risks of credit cards industry in China: credit risk,operational risk, fraud risk and cash risk. Then I put forward four basicprinciples of credit cards risk management: comprehensive riskmanagement, risk and return matching, systematic risk measurement andimproving the IT platform. And in accordance with these principles,based on research of state-owned commercial banks, credit card riskmanagement measures, approaches and deficiencies are introduced. Onthis basis, highlighting the discussion of credit risk measurement methods,which is the most important risk of credit cards industry, studying theapplication scorecard models, behavioral scorecard models. Finally,introducing five-point suggestions to improve our credit cards risk management levels.