Research On Governmental Regulation On Credit Card Risks Of Commercial Bank

Trading on credit, as an absolute and internal created consequence of significant advanced market economy system, made credit card which is credit trading important media became vital extensive end of monetary system. In highly maturate European and American market, credit card has become widely used channel of payment and financing based on well developed credit rating system and advanced informational technology, and also became one of supporting industries of the national economy. Further, in those dominant industries, credit card industry seldom maintains a certain level of annual growth rate. Comparing with western countries, in recent years, the development of Chinese credit card has been through immature to mature and integrated into people’s daily life. Especially, in economically developed areas, credit card has become an important means of daily payment by virtue of its convenience, safety and flexible characteristics. The emergence of credit cards brought changes to society and convenience to people’s lives, also improved efficiency of individual funding. Further, to card issuers, business and the country significant gains is created by credit cards. However, simultaneously, the development of credit card encountered many challenges and risks that are affect relative institutions and individuals.As a raising business scope, its development mainly from internally, but governmental promotion is unelectable on:credit card risk regulation and prevention; well functioning and healthygrowth and beneficial to security development from the perspective of its impact on society as a whole.How to effectively use the positive promotion to improve legislations and regulations; how to establish reliable credit card risk supervisory organization and how to improve the credit card risk supervision system are needed our government to shoulder this responsibility and research.Therefore, to manage China’s commercial banks’ credit card risks, the regulatory body should based on realistic problems existing in China, combined with the foreign government regulatory good experiences to promote supervision on China’s credit card risk, to establish united, coordinative and professional supervisory organization and to reinforce the card issuers regulation, thus, to promote our credit card industry healthy and orderly development.