The Quanzhou Area Bank Risk Management Of Credit Card Business Strategy Research

At present, credit card business has already become main business type and profitsource of many international banks, and it is also considered as key developmentbusiness by more and more domestic banks. But, as a business of high profit, highrisk of credit card business also exists at the same. In the domestic, people still don’thave mature concept of overdraft、honesty and trustworthy, which makes overdraftconsumption of credit card function difficultly. And it happens that low overdraftrate、high repayment rate、few consumer installment and serious false transactions.Not only such, improper credit card marketing behavior between banks and expansioncompetition mode of seeking the scale and ignoring benefit, more aggravate the riskof credit card business. Therefore, it is very important to prevent and control the riskof credit card.In recent years, credit card business in QuanZhou area developed rapidly. However,at the same time, bad debt of credit card began to rise, and total risk of credit cardsuch as overdraft balance of overdue accounts and loss account also kept rising.According to economic characteristics of QuanZhou area, it is of realistic significanceto discuss the risk prevention strategy of credit card in QuanZhou area.The thesis firstly introduces the economic development in QuanZhou area,summing up four major economic characteristics: advanced private economy、highpeople income level、tremendous potential of consumption market、strong needs ofshort-term funding. The next, drawing lessons from Wang Zengguo about credit riskclassification method, and based on the three main perspectives in the course of usingcredit card (credit card cardholder (applicant)、bank、merchant), the thesis analysesthe risk of credit card business and its causes, combining with the characteristic ofQuanzhou area. And then, according to risk management factor in the《overall riskmanagement framework》published by the United States COSO Commission, thethesis points out corresponding risk management strategy. With XX bank Quanzhoubranch as an example, based on its credit card development, the thesis analyses its main risk, and points out corresponding risk management strategy, to standard bankcredit risk management, improve credit card profit level, reduce business risk, andtest the feasibility and practical value of the results of this thesis.