Research On The Risk Management System Of Credit Card In Small And Medium Commercial Banks

With paperless currency and innovation in financial payment,the penetration ratio of bank cards to paper currency is on the rise,and exceeds 80% in some economically developed regions.In the meanwhile,identity theft,card cloning and fraud of various kinds of bank cards are seen frequently and featured by high technology,professionalism,group activity and secrecy.In such context,central bank issues a document requesting all commercial banks to strengthen bank card risk prevention,tease out risk points of bank card business,properly make publicity regarding safe card use,and speed up the building and transition of financial IC card.While speeding up the building and transition of financial IC card,all commercial banks need to keep teasing out operation risk and fraud risk within the banks,research credit risk,and have begun to research and develop and use such professional systems as incoming system,rating system,transaction fraud detection system and collection system to conduct risk prevention and control and risk management for customers applying for credit card in all sections from application for card,card opening,card use,to collection in case of overdue.It is hoped that management and control of bank card risks may be conducted with respect to software and hardware,both internally and externally.With China's economic development and increasing penetration rate of bank card,the security of bank card involves more and more card holders and has become the concern of all card holders.As the only card issuing institution in China,the bank shoulders the unshakeable responsibility for the fund in the card of each card holders.While making efforts in developing bank card business,each commercial bank also strengthens internal control in terms of structural design of bank card department,building of bank card system,bank card issuing,and daily management,keeps improving the level of risk management and control and enhancing the measures for risk management and control,thus responding to the changing crimes involving bank card.This article first introduces related theories of credit card and vivid characteristics of credit card business in small-and medium-sized commercial banks,makes corresponding feature analysis with respect to operation risk,credit risk and fraud risk involved in credit card business of small-and medium-sized commercial banks,and put forward appropriate risk management strategies.Then,the article analyzes the improved risk management strategies at the level of credit card application system in small-and medium-sized commercial banks,and conducts the analysis and research of the role of risk management in top structure design and assessment of credit card department of small-and medium-sized commercial banks.The article teases out the status quo of credit card risk management surrounding characteristics of credit card business of Changshu Rural and Commercial Bank,analyzes the development trend of credit card risk,and put forward practical suggestions and ideas for measures regarding credit card risk management,which may be helpful for small-and medium-sized commercial banks to improved their risk management capability of credit card business.