The Government's Regulation Research Of Credit Risk

Along with the rapid pace of economy development in China, credit card payment has become a payment method widely accepted by consumers. On one hand, it affects the traditional cash transaction. On the other hand, it unearths potential profit opportunities for business. Credit card is not only a direct product but also an inherent demand generated by highly developed market economy. As a main payment method used in credit transaction, credit card has been an extension of the currency system of the world. Functioning as both digital currency and consumption credit, credit card payment leads to increasing consumption and continuous growth of society and economy in China.In European and American Countries, where market economy is well-developed, C redit cards had already became a common method of payment and financing, with the s upport of a healthy credit system and advanced technology. In 1985 credit cards were fir st introduced to China, and it has been more than 30 years. It should be noted that in rec ent years, the credit card system has grown from a incomplete one to a mature system, t aking only a short period of time, now the use of credit cards is quite common.In some of the developed regions in China, using credit cards is already a usual way of daily pa yment. It is a more effective mean of financing for individuals, benefiting not only issui ng agencies, but also the merchants and national taxation.However, what can not be ign ored is that the development of this industry in this country is facing enormous risks and challenges. Observing it's relationship with the society, we are able to notice that the pr otection of the system, the healthy development of the industry as well as the function o f credit cards all require guidance and supervision from the government.The solutions ar e:a)Establishment of a national credit data base. b) Establishment of a credit rating institution. c) Construction of a strict risk management and control mechanism. d)A coopera tion between banks and police and justice department e) Standardization of third party payment and protection of the credit card-relating technology. f) Dissemination of the m orality of credit.