Research On Risk Analysis And Response Strategy Of Credit Card Business Base On X Bank

From the birth of the first credit card which called the Great Wall in 1986,to the start of fast development of China’s credit card market,there are more than 600 million pieces of credit card.At the starting time,it is very difficult to the credit card market to do anything smoothly.Contribute to the outstanding ability of profit and convenient use,the credit card has successfully integrated into our daily life.Credit card changed a lot of things,no matter the spending habit,the method of payment or the consumer behavior of our residents.As the amount of credit cards has grown geometrically,the credit scale and credit utilization have substantial increased.And the potential risk of credit card is more obvious and frequent,such as the credit card arbitrage cash,credit card fraud,malicious overdraft of credit cards and credit default.It may increase bank losses and limit the growth of bank profits.Therefore,credit card risk has become particularly important.For this reason,this paper use the methods of risk control,draw lessons from advanced credit risk analysis and risk management no matter domestic or foreign.In addition to,the paper adopts the research methods of literature research,summary and case analysis.Firstly,it goes into the achievements of previous research,summarizes the relevant theoretical of credit card and elucidates the risk of credit card.Secondly,life cycle theory is used to classify the risks faced by X bank,one of the China’s city commercial bank,in the initial stage of the operation of credit card business.This paper respectively analysed the risk of the credit card business link which include credit approval standards,card product development,card product marketing,credit review and approval and credit card management.And it analyzes risk formation reasons of X bank credit card business from the angle of the inside of bank,card customers and the external market.Finally,this article put forward the improvement methods and suggestions for every link of the credit card business operations about risk and Safeguard measures according to the risk countermeasures.It has theoretical and practical significance to promote the business development of X bank’s credit card.It is also important to enhance their risk response ability,development the credit card business steadily under the condition which the risk matches the return.At the same time,to deal with the risk of credit card operating,will be the crucial meaning to our city commercial bank,who are the new one to develop credit card business.