Research On Risk Of Credit Card LeverageManagement Of BOC Gansu Branch

Credit card risk management is a long-term and arduous task because it is greater and more hidden than traditional banking risk to some extent according to its traits such as diffusing risk,multiple links,unsecured repayment and unfixed term loan.Credit card risk reflects some characteristics like broader range,numerous in variety,hazard to market and so forth.In view of the inherent credit card risk,it should put forwards some feasible preventive measures in order to block the wave of credit card leverage.Since 2013,affected by the economic downturn,the credit card NPL ratio increased year by year.From the point of national data show,as of December 31,2014,Bank of China credit card defective rate is 1.94%,among the top of the big four state-owned banks,with its cancel after verification value of 2.05 billion and adverse balance of 4.78 billion,only second to China Construction Bank.Therefore the bad credit card overdraft has seriously affected the he althy development of credit card business.This paper is based on the case study of credit card leverage of Bank of China Gansu branch,firstly introduces the concept of credit card business,its business development status,the charac teristics of the business,the types of the risks and the main source of risk.Secondly,through the case study,it analyzes the types and characteristics of credit card leverage of Bank of China Gans u branch,and the reason why the credit card leverage existed from two aspects of external and in ternal.Thirdly,it analyzes the risk of leverage including the risk of cash funds,external regulator y risk,the bank staff moral risk,other risks and so on.The fourth,it proposed the preventive mea sures of leverage from the aspects of risk prevention and control for risk analysis of cause analysi s.This paper has the practical significance to overcome a lot of cash problems of commercial banks in credit card business,especially to change commercial bank credit card business manage ment concept.It should actively strengthen the credit card cash anti-leverage ability,formulate re levant strategy of anti-leverage.It would provide specific work instructions to make the risk dow n to manageable from a technical point.