Research On Credit Card Risk Management In Commercial Banks

Credit card,as an imported product,has been developing in China for more than twenty years.As the main card issuer,commercial Banks charge service fees,annual fees and interest by providing services to cardholders and charging interest on overdue payments.These make up the revenue from the credit card business.Commercial Banks also use this to achieve profit.At present,China has entered the Internet age,the rapid development of network technology,and step by step towards maturity.Under this background,the development of credit card inevitably collides with network technology and produces intersection.At the same time,credit CARDS have become an integral part of residents’ daily life.The social norm that everyone can apply for and hold a credit card has led to a rapid increase in the number of credit CARDS issued.The credit card business has reached its saturation point.However,the credit card revenue of the major commercial Banks has been rising,and the Banks have been clinging to the credit card business,leading to fierce competition between Banks.But,due to weak security awareness,insufficient technical personnel and backward business management,credit card risks are increasing,leading to the risk of major commercial Banks.In order to understand the real status of credit card risk management of commercial Banks in China more accurately,CITIC bank is selected as the research object to conduct in-depth analysis of the credit card business of CITIC bank.This paper first explains the theory of credit card risk management in detail and lays a solid theoretical foundation for the analysis of the full text.Secondly,it makes a detailed analysis of the development status,operation status and credit card risk management status of CITIC bank,so as to improve the basis for the following contents.Next is to analyze the problems at present stage,concrete is the implementation of the "three witness" principles,the outdated risk management and backward technology,collection mechanism is not sound,etc.,as well as the cause of the problem,including improper sales behavior,internal factors such as lack of professional management personnel and related laws and regulations is not sound,personal credit reporting system is not perfect,such as external factors,carries on the explanation;Finally,aiming at the problems and reasons of credit card risk of CITIC bank,the author puts forward specific strategies such as setting up the correct development concept,strengthening the construction of talent team,introducing advanced risk management technology,perfecting the internal mechanism,perfecting the law,perfecting the personal credit system and so on.Credit card has many characteristics,such as strong concealment,great harmfulness and wide range.Makes each big commercial bank to credit card risk management from beginning to end does not have the slightest slack.However,in the credit card business,it involves a wide range of fields and departments,plus the long process of credit card,making credit card risk sources wide,the risk management of credit card increased difficulty.Moreover,the macro-economic environment of credit card management cannot provide enough support for the management department,for example,the relevant laws are not perfect,and the major commercial Banks are even more powerless.Therefore,the study of credit card business risk management is of great significance to the society and commercial Banks.