Study On Default Risk Prevention Of Credit Card Business

The launch of credit card brings a lot of convenience to people’s work and life.At the same time,credit card business plays a positive role in improving the customer structure,increasing business income and optimizing the income structure of banks.Major commercial banks compete to seize the credit card market and do their best to enlarge the scale of credit card issuance.However,due to the external information asymmetry,business lag and other characteristics,credit card malicious fraud,illegal cash out,illegal operation and other default risk events emerge in recent years,bringing huge losses to banks and customers,attracting widespread attention of commercial banks,and focusing on improving the ability to prevent credit card business default risk.Based on the actual situation,this paper takes the credit card business of Jiangsu Branch of Bank A as the research object,explores its default risk factors,and takes corresponding measures to effectively prevent its credit card default risk.First of all,the concepts and theoretical basis related to credit card business are summarized by referring to relevant literature to provide theoretical support for the following research.Secondly,it expounds the current situation of credit card development and default management in Jiangsu Branch of Bank A to provide factual basis for the following;Thirdly,it lists analysis of typical default cases,adopts questionnaire survey and interview survey to sort out the default risk management of all related links of the credit card business of A Bank Jiangsu Branch,summarizes its existing problems and analyzes its causes.Finally,specific prevention strategies for default risk are proposed according to relevant problems and causes.By studying the credit card default risk management and optimization of A Bank Jiangsu Branch,I hope to help it improve its credit card business management level,promote the healthy development of its credit card and improve its profitability.At the same time,we expect to bring reference and reference for credit card default risk management of Chinese commercial bank,and then promote the credit card business market healthy and sustainable development.