A Study Of Risk Management Of Commercial Bank's Credit Card Business In China

Credit transaction is an inevitable result of the highly developed market economy and has become an internal requirement thereof. And credit card, a newly-emerging tool for bank credit and payment, has improved the efficiency of social payments, reduced transaction costs and enhanced transaction safety. Moreover, with the unceasing reduction of profits from their traditional business, commercial banks, domestic and overseas, view credit card as a new profit growth. However, due to a rapid development of credit card business in China and a booming volume of credit cards, risks concerning credit card are increasing both in quantity and in variety, bringing to ever greater losses. Therefore, an effective management and control of such risks has become a focus of all commercial banks in China.The beginning of the thesis is an overview of risk management of credit card business, with definition, characteristics and classification of the credit card risks.The reasons of the formation of commercial bank risks in China are analyzed and the advanced experience and mode of risk management of credit card business in the United States are used as a source of reference.In the end, according to the practical situation of the risk management of commercial bank's credit card business in China, recommendations for enhancement of the risk management are given in two aspects:establish and perfect outside environment systems of credit environment system and legal system; considering the internal environment of commercial banks, by optimizing such processes as approval, credit extension and collection, establishing an applicable risk management strategy and risk early warning system, and making use of integrated risk management idea, to seek for methods suitable for risk management of credit card business in China, in order to promote development of credit card business in China.