The Credit Risk Of Credit Card Advances Business And Metrics

1.The research background:The credit risk is the main risk of the commercial bank, and also the main risk of the credit card overdraws.On June 26 in 2004, the Basle Committee Bank Supervision publicized the"New Basle Agreement", which will replace the current agreement published in 1988, at the end of 2006.The New Basle Agreement represents the advanced risk management and supervising technology.With the coming and global implimenting of New Basle Agreement, it has no doubt that it has been affecting domestic banking risk management, especially for the four state-owned commercial banks.With the quickening of the pace of reform in banking system of our country and the improvement of the degree of opening of financial circles, the domestic banking faces the severe challenge of international competition. However, most of Chinese commercial banks have not built up a practicable risk management system, which should be based on the international modern credit models and database. The current risk management system which is made of traditional credit models and single-form management approach could not meet the need of internationalization of domestic commercial banks, especially state-owned banks. As for the commercial banks in China, how to enhance the management of credit risk is an important challenge. So, before we try to build a set of modern risk management system and raise the risk management level, we should solve many urgent problems, for example building domestic commercial credit models on the New Basle Agreement frame.