The Risk And Its Prevention Of Credit Card Large Amount Installment Payment Business

Since2010, The People’s Bank of China has continuously raised bank legal depositreserve ratio many times, and has raised Renminbi benchmark deposit and lending interestrates five times. With the rising level of CPI, to raise the legal deposit reserve ratio andbenchmark deposit and lending interest rates must be a trend in the future as a result. Underthe strictly controling circumstance of the credit scale, consumer prefer to choose the creditcard instalment consumption patterns. Therefore, making the profit model of installmentpayment business as a new competitive product in credit card market is a really popular trend.Installment payment business become a great innovation method for commercial bank, its hasimproving the brush calorie of consumption, increasing the effective of overdraft, andupgrading the account activity rate, thus it encourage the huge development potential andeconomic benefits.Large credit card installment business is the development trend of the future, and theemerging power of bank intermediary business revenue. However, the excessive expansion ofthe large amount instalment would leads to a series problems, including customer choiceproblem of adverse selection caused by asymmetric information; the credit risk, operationrisk, and moral hazard. All of them may brought bad assets issue as well as the internal riskcontrol system, etc. Therefore, the risk of credit card large amount installment business andits prevention of analysis is particularly important in the current situationThis article selects the one grassroots branch, Y branch of bank of China (guangdong) asthe analysis place, and the credit card large amount installment business as analysis object.This article analysis is from the reality of business, based on the credit card large amountinstallment business real data to describe the quality of asset, transverse and longitudinalcomparative analysis found that the current Y branch credit card large amount installmentbusiness risk present situation and existing problems. At the same time, this article let theloan process as the main line, as before the loan, examination approval of loan management,and post-loan collect such links as the analysis, the cause of the risk of credit card installmentbusiness big made the detailed discussion, and puts forward targeted Suggestions for theproblems The risk and its prevention research of credit card large amount installment business ofBank of China (guangdong) branch Y, may describe clearly branch Y’s credit card largeamount installment business current situation in2012, summarized and comb the risk status.What’s more, from the aspect of loan process to discuss this branch Y’s credit card largeamount installment business risk could make the discussion deeply, which advantageous tothe defective rate as well as the big stage of effective control of the business assets quality ofascension, and can effectively promote the branch Y’s credit card large amount installmentbusiness risk prevention system and the improvement of the system, the optimization of itsrisk prevention has certain reference significance.