The Empirical Study On The Factors That Result In The Default Risk Of The Commercial Bank’s Credit Card

China’s credit card business has developed rapidly in recent years and has become an important part of the bank’s intermediary business income.With its flexible credit situation and advanced payment methods,credit card has been widely recognized by domestic consumers.Credit card has become an indispensable payment and settlement tool for consumption.For commercial banks,credit card business must be accompanied by high risks while achieving high profits.In the context of the continuous increase of operational risk and the rise of non-performing loan rate of commercial banks in China,it is of more practical significance to study the factors affecting the default of credit cards.This paper first introduces the relevant theories and concepts of credit cards,and studies the current situation of commercial banks’ default.Based on the customer data in the database of the credit card center of Bank H from January 2017 to December 2021,the article excludes the data with incomplete customer information and irregular filling.From the perspective of basic customer information:gender,age,occupation,education and other dimensions,this paper makes a comparative analysis of the default situation of Bank H,and uses logistic regression model to regression analyze the above factors that may cause.default.The research results show that the credit card default will be affected by the customer’s gender,age,occupation,education and other factors.Among them,the default rate of male customers is higher than that of female customers,the default rate of young customers is slightly higher than that of older customers,and the default rate of customers with stable professional income is lower than that of other occupations.In this paper,different educational backgrounds are set as dummy variables.It is found that different educational backgrounds have a more significant impact on default.The conclusion is that the higher the educational background,the lower the default rate.The test of regression results is consistent with the original regression.Finally,according to the conclusion of empirical analysis,combined with the characteristics of default risk,this paper provides risk prevention suggestions for commercial banks.