The Credit Card Credit Risk Management Research In Commercial Bank

Starting from the introduction of the financial character determined by credit card origin and its definition, this paper analyzes the application of scoring method in credit risk management of credit card and then undertakes inducted research of the usage of credit examination and approval scoring card model of credit card with the application of logistic regression model and comes to some useful conclusions in the end.This paper also systematically introduces the application of credit risk management of credit card both inside and outside the card issuing institute i. e. the credit card pricing and its asset securitization based on risk adjustment. Meanwhile it puts forward some suggestions for credit risk management of credit card business in our commercial banks.The first chapter of this paper is introduction, which mainly introduces why the research starts and its significance at first, and then the framework, method and main conclusion of the paper, and lastly the main innovation and something left to be improved.The second chapter mainly introduces the finance character of credit card business. Based on the financial character determined by credit card origin and its definition, this paper analyzes three outstanding characters of credit card and systematically introduces the principle conception, bodies and operation principal of credit card. And it also analyzes the development motive and impetus of credit card business.The third chapter mainly introduces the credit risk management of credit card business. Credit risk type of credit card business is deliberated in this chapter and index system of credit card is also given by the requirements of New Basel Capital Agreement set for credit risk control. And then it analyzes why credit risk of credit card occurs and gives the corresponding solution from two aspects of adverse selection and moral hazard.The fourth chapter systematically introduces overseas present matured manner and techniques of credit risk management of credit cardbusiness --- the principle of scoring card. It first introduces thedevelopment of the manner and technique of this credit scoring and then details the five techniques in application i. e. classifiers based on Bayes decision theory , decision tree classifiers, logistic regression classifiers, nerve network and support vector machine based on statistics theory. And lastly it compares the performance of these five techniques in credit risk management.In the fifth chapter logistic regression analysis is applied for a certain card issuing institute to find out the relationship between each information element provided by card holders and their credit situation with the analysis of the credit , financial data about the card in use and credit situation of its customers in a certain period of time. And then with the consideration to statistics standard and reasonability of the business, index and weight which affect customers' credit situation most are to be determined to establish quantitative risk model. After the successful verification of testing sample, the model formula is got and put into use when new application is handed in to evaluate applicant's individual information, computing its default rate to decide whether the card is issued to the applicant or not.The sixth chapter mainly introduces the inner application of credit risk management of credit card and focuses on the analysis of credit card pricing which is based on risk adjustment. This chapter fist analyzes the status quo of credit card pricing, finding out domestic and overseas characters of credit card pricing. And then it dwells on the revenue and expenditure model of credit card business based on risk control to establish risk pricing model of credit card.The seventh chapter mainly introduces the outer application of credit risk management of credit card business i. e. securitization of credit card asset. It first analyzes its significance and puts forward the four affects in credit risk management and then introduces its flow and analyzes the seven bodies involved. And lastly it analyses a case of securitization of credit card asset.The eighth chapter mainly introduces the our commercial banks' status quo of their credit risk management of credit card business and puts forward relevant suggestions. This chapter first analyzes domestic and overseas credit risk management status quo of credit card business, pointing out five characters of overseas credit risk management of credit card business and then suggests that during the outer system establishment process of our credit risk management of credit card, government's credit system be strengthened, modern credit service industry and individual's honesty and reputation established to guard against credit risk of credit card and lastly it puts forward some suggestions from six aspects for our commercial banks' credit risk management of credit card business.