Research On Credit Card Overdue Risk Rating System Of Guangzhou Bank

For commercial banks,high returns and high risks will be accompanied with credit cards business.With the rapid development of China's financial market,especially the credit card business for major commercial banks,the number of credit card users has been increasing year by year.While improving the convenience of transactions,the security risks which credit card business facing becoming increasingly prominent as well.Especially in recent years,credit card users have experienced frequent overdue phenomena,which has greatly affected people's normal lives,damaged the interests of commercial banks,disrupted the order of financial markets and bring serious financial risks.Guangzhou Bank initiated the credit card business since 2011.Although credit card overdue risk management is the major task of risk management,due to the complex and diverse factors which leads to credit card overdue risks and the lack of effective credit card overdue risk rating system,hence with respect to credit card risks identification.There are many issued such as accuracy,poorly targeted risk identification and low recognition efficiency have led to subjective factors for credit card overdue risk ratings,furthermore,low quantification and lack of scientific in rating results,which has also led banks to larger bias overdue risk management for credit card users.Posing negligence and omission on credit card overdue risk management.This thesis focuses on the overdue risk management of Guangzhou Bank credit card users,and aims to create an overdue risk rating system for Guangzhou Bank credit cards by using an objective and scientific method.Based on credit risk management theory,Basel Capital Accord and financial risk management theory,this paper analyzes the current status,deficiencies and defects.Based on historical data samples ingestion from the credit cards users of Guangzhou Bank,a logistic regression system is used to select credit card overdue risks based on 33 key risk characteristic variables,a credit card overdue risk rating system is established based on these variables;then use the credit system's typical sample customers to verify the effect of the rating system,and in combination with the Bank of Guangzhou's risk management practice,the application implementation scheme with schedule and safety measures rating system are proposed.The research shows that compared with the original credit card overdue risk rating method that relied on subjective judgments,the rating system of this paper has very obvious advantages,and the rating process is simpler and more efficient.The accuracy of risk identification is higher,the targeting is more specific,and the risk identification efficiency is much higher,and there are significant improvements in evaluation efficiency,index quantification,and boundary determination,which reflect the objectivity and reliability of the rating system.The risk rating system of this paper improves the quantified level of overdue risk management of credit cards in Guangzhou Bank,and helps to provide important methodological guidance and practical basis for the scientific management of overdue risks of credit cards.