A Risk Management Study On Credit Card Of Industrial And Commercial Bank Of China A Sub-Branch

As a tool used as consumer credit and payment, credit card is used frequently in people's daily life. According to the statistics of Central Bank, at the end of 2014, the average credit banks in China has reached to 0.34, which means that almost every single family owns one credit card. The period of the Thirteen Five-year Plan is a crucial for the development of Chinese economy due to the flood of chances Chinese could get. The sharp increase of the traditional credit card business and the expansion of the scale will provide important chances for the acceleration of transformation, service quality improvement and efficiency enhancement of credit card business. At the same time, the internet is obstructing the development credit card business because the benefit brought by credit card and the risks increase simultaneously. With the fast development of urbanization in China, the credit card business started to develop fast in medium and small cities and the market pattern of such business is changed greatly. Therefore, the management of the credit card risks in medium and small cities is of great significance for the sustainable development of the credit card business.In this thesis, the second-level branch of Industrial and Commercial Bank of China, Sichuan A Branch will be taken as an example to analyze the development of credit card business of the branch so as to investigate the strategies to manage risks. The credit card risk management will be divided into three parts:risk management beforehand, risk management in the process and the risk management afterward. At first, the management before issuing credit cards could make sure of the balanced development and quality improvement of the high-quality credit cards. Secondly, after issuing credit cards, the dynamic management of the balance in the credit cards amount could matching of the amount and credit status. Thirdly, the strategies to manage credit card efficiently so as to prevent the increment of the bad balance in credit card, enhance the collection rate of contract. At last, the risk prevention strategies to manage the risks are introduced from the perspective of deception risks so as to help improve the quality of credit card property. The conclusion of this research is of great importance because it is based on the statistics of real operation of A Branch.This thesis is divided into five parts:the first chapter is the introduction of the research background, research significance, research methods and research purposes. The second chapter is the analysis of the theories about risk management and credit card risks. In the third chapter, the research object, the Sichuan A Branch is introduced from the perspective of the present status of the credit card business and the present risk problems that the branch is facing. In the fourth chapter, the reasons for the problems with the credit card business risks and the solutions to the problems. The last chapter is the summary of the major findings of this research and the relevant suggestions.