Research On Credit Card Risk Management Of Xiamen Bank

In 2021,with the rapid development of China’s economy,bank credit card business occupies an important position in the financial market with its flexible,convenient and fast consumption payment method.With the continuous expansion of card issuance and transaction volume,commercial banks take credit card business as the leader in the development of retail business.It is not only an important part of retail business,but also one of the important businesses for banks to carry out strategic transformation.At the same time,the rapid development of bank credit card business has not only brought high benefits,but also accompanied by high risks.The research on the risk management of credit card business has also become the direction of banks’ active exploration.This paper is based on the thinking of credit card business risk under the new situation,and combined with the actual problems encountered in my work.As the most representative city commercial bank in the city,Bank of Xiamen took the lead in issuing Taiwanese credit cards and Phoenix flower standard credit cards in 2019,and launched Meituan co branded credit cards in 2020.With the advantage of online drainage of Meituan platform,by May.2021,Xiamen bank had issued nearly 600000 credit cards.However,as a regional urban commercial bank,it still shows a large gap compared with large state-owned commercial banks.The credit card business of Xiamen bank is limited by its own business model,overall market share and regional conditions.At this stage,it can only survive in the cracks and must be continuously integrated and improvedTaking the Credit Card Department of Bank of Xiamen as the research object,this paper uses the research methods of literature research,interview analysis,case analysis and data analysis to analyze the current situation of credit card business risk management of Bank of Xiamen under the new situation,and analyze the main problems faced by the credit card business risk of Bank of Xiamen at this stage:(1)the lack of risk assessment and evaluation mechanism at the marketing end,Weak risk awareness of marketing personnel;(2)The pre-loan credit approval method is not rigorous,the credit evaluation system is not perfect,and the variable dimension of the quota model is single;(3)The level of dynamic monitoring is weak,and the follow-up and disposal of transaction monitoring is lack of timeliness;(4)The means of post loan loss recovery is backward and the attention to loss recovery is insufficient.The above problems have brought many hidden dangers to the credit card risk management of Xiamen bank,which is not conducive to the sustainable and healthy development of Xiamen bank’s credit card business.In view of the problems faced by the credit card business risk management of Bank of Xiamen at the present stage,through the summary and analysis of the experience and lessons of daily risk management in the Credit Card Department of Bank of Xiamen,this paper studies the risk management optimization strategy,starting from the four modules of marketing,pre-loan,in loan and post loan.(1)Optimize the management mechanism at the marketing end: improve the performance appraisal at the marketing end,cultivate the risk prevention awareness of marketing personnel,and strengthen the construction of compliance system.(2)Improve the audit level before loan: improve the professional ability of credit audit personnel,improve the ability of risk assessment and reasonable credit extension.(3)Optimize risk monitoring during loan: improve the ability of dynamic monitoring and improve the risk management information system.(4)Improve the loss recovery system after loan: broaden the loss recovery channels and methods,and establish a risk transfer and compensation mechanism.According to the optimization measures,this paper puts forward three guarantee schemes:(1)improve the internal control management system of credit card business.(2)Improve the risk management personnel training mechanism.(3)Ensure the security of credit card business data.The above optimization strategies and safeguard scheme have important theoretical significance and practical guidance for the credit card business risk management of Bank of Xiamen;On the other hand,Xiamen bank,as the representative of the newly rising urban commercial bank,its credit card business risk management model and strategy research also has a certain reference significance for similar banking institutions.