Demonstration Of Influencing Factor Of The Risk Of Credit Card Defaults Study

Currently, an endless stream of e-money financial products, credit cards is one of the world’s iconic generic products. To the present, many of the world commercial banks are very favorite credit card for this product, because it can bring in huge profits for the commercial banks. China, in particular the development of the credit card is still in the initial stage, the growth rate is very fast, it bas become to be one of the pillar business. But no doubt, because the number of domestic commercial banks issue credit cards under the rapid rise, people’s consumption level is a significant increase in credit card, also showed a series of risk factors, the default risk is aggrandized.From the macro and micro aspects of the credit card risk of commercial banks were studied. The first part is an introduction, describes the background, significance, study abroad and research methods reviewed papers. The risk factors increased every year in China since2009, the default risk is aggrandized. And the economic environment get worse, the rate of economic growth slowly than before, Under China’s commercial banks has been greatly affected by the economic environment, overseas credit card to reduce the risk of default, they use credit ratings, enhanced coverage of a variety of methods such as credit records, our assessment is still using fixed assets and personal property assessment of the state issuing a credit card issuers, foreign comparison, our credit card business need to change the status quo, thereby reducing the risk of credit card defaults. The second part outlines the credit card default risk and credit card default risk factors. Credit card default risk in a variety of business at commercial banks, it is a relative importance of a risk categories, macroeconomic factors and micro-economic factors are likely to have an effect to increase the risk of credit card defaults, the status quo at our country is not optimistic of credit card default risk, increasing undesirable credit card rate, will adversely affect the commercial banks. The third part of the credit card default risk factors of empirical research, is the main part of the article. This part, from two parts starting, the macroeconomic influencing factors and microeconomic factors influencing factors, empirical analysis of macroeconomic factors, using multivariate regression model, using four macroeconomic factors as variables. In our commercial bank credit card bad rate for basis, combined gross national product, the consumer price index, unemployment and interest rates four aspects, whether an analysis of macroeconomic factors affect the risk of default on the credit card, the empirical analysis of micro-economic factors, using Logit model, using five micro-economic factors as variables, by analyzing age, gender, education, marital status and occupation of the five aspects, the study of credit card holders in different areas of default, analyze microeconomic factors have an impact on the risk of credit card defaults. The fourth part is a summary of the full text of this article describes views. In this paper, the results of the theoretical results with the actual results, in order to reduce the risk of credit card defaults recommendations. Empirical research paper summarizes the conclusions from the government, commercial banks, cardholders three angles, and make policy recommendations to reduce the risk of credit card defaults.The paper has two main innovations:First, at the macroeconomic level, this paper analyzed undesirable credit card rate began to rise since2009, the impact of macroeconomic factors on the credit card non-performing rate, in the period of national economic prosperity, undesirable credit card rate will drop. Therefore, to strengthen the information connection between the government and the commercial banks, make the commercial banks pay attention to the macroeconomic situation at once, it can reduce the default risk of credit card.Second, at the micro level, through the analysis of the micro economic date, we can found that credit card overdue customer has certain regularity, refer to the rules to make scoring mechanism card, this can reduce the risk of default of credit card, from the beginning of the credit card issuing.Although this article uses the real credit card data innovative sample, analysis the macroeconomic factors, microeconomic factors have an impact on the risk of credit card defaults, however, due to the limited capacity of the author, in many respects, there is insufficient and needs to be improved place.First, when looking at the micro-economic data, only to find five aspects in the age, sex, education level, marital status, occupation. Of course, this is because in practice, we only collect these data at commercial banks, in future studies, with the development of the credit card business continuous, and constantly improve of the credit system, the follow-up study of this article will dig deeper to strengthen data, collection more comprehensive data for empirical research.Second, credit card natural condition scoring mechanism constructed only formed in theory, as used herein empirical study constructed model results, since the data is only1890, the resulting model also rough. In future studies, the author will endeavor to complete the scoring mechanism to be constructed scoring system, to provide more practical help for the commercial banks to reduce the risk of credit card defaults.