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How banks prevent credit risks

Question 1: How to prevent and control bank credit risks 1. Strengthen internal control and operational risk management concepts, and establish a good risk control corporate culture. For city commercial banks, it is important to introduce advanced international banking practices It is an urgent task to implement the concept of operational risk management and form a good corporate culture atmosphere of risk control. To establish a good cultural atmosphere for operational risk control, we must first clarify the scientific meaning of operational risk and risk control means and methods. Modern bank risk management theory gives a clear definition of operational risk, that is, operational risk refers to the risk of direct and indirect losses due to improper or failed internal processes, personnel behaviors, and systems, as well as external events. Operational risks mainly come from two levels: internal control and external events, and mainly include: personnel risks, system and process risks, technical risks and operational strategy risks. The prevention of bank operational risks mainly relies on perfect internal control, which is the main means to effectively implement bank operational risk management. In 1997, the Basel Committee on Banking Supervision proposed in the "Core Principles for Effective Banking Supervision": "The most significant operational risk lies in the failure of internal control and corporate governance mechanisms." According to the definition of internal control of commercial banks in the "Guidelines for Internal Control of Commercial Banks" promulgated by the People's Bank of China in September 2002: Internal control of commercial banks means that in order to achieve business objectives, commercial banks develop and implement a series of systems, procedures and methods to control risks. The dynamic process and mechanism for prevention beforehand, control during the incident, supervision and correction after the incident. Similar to other domestic commercial banks, Jinzhou Commercial Bank focused on the expansion of asset scale and the increase of market share in the early days of its establishment, in order to gain a place in the regional banking market and fulfill its initial survival and development needs. At this stage of development, the bank's risk awareness is still in its infancy. Although everyone from management to employees is aware of the importance of risks, there is a lack of effective means and scientific methods for risk control in the system. With the increasingly fierce competition and the deepening of bank risk supervision requirements, management is deeply aware that it is necessary to form a risk control corporate culture, establish a scientific risk management and internal control system, and integrate advanced risk control means and methods with the bank's own operations. Combining the characteristics to achieve "practical, effective and skillful use", thereby comprehensively improving the bank's risk management level. Through the implementation of risk management and internal control projects, Jinzhou Commercial Bank has introduced scientific banking operational risk management concepts and strengthened the training of internal control and operational risk management concepts and methods for management and employees. Within the bank, risk management has been transformed from advanced theory to the conscious awareness and behavior of all bank employees, so that all bank employees from senior bank managers to grassroots employees have an accurate understanding of the content and meaning of internal control and operational risks. A clear understanding of the extent to which the bank's internal controls are relevant to operational risks and to each employee. Through training, employees have further clarified the risk control methods and means for different positions, so as to control risks reasonably and effectively. While strengthening the publicity and training on the concepts of internal control and operational risk, the project team redesigned the original performance appraisal and salary system and integrated comprehensive risk management content including operational risk management into it, so that internal control and Risk management is not only a requirement for employees' daily work, but also becomes a cost factor for measuring department performance, directly affecting the department's operating efficiency assessment results, and thus forming an incentive mechanism for risk management for managers and employees. Through pre-training, in-process supervision and post-assessment, the bank's internal control and risk management concepts have been deeply implemented into every employee. It is believed that after a period of implementation, a good internal control and risk management corporate culture will be formed. 2. Further improve the organizational structure and job responsibility system of risk control. A sound organizational structure is the organizational guarantee to ensure internal control and risk management, and scientific job responsibility design can ensure that each employee has the right, responsibility, and responsibility in internal control and risk management work. A clear division of labor should be clearly defined for profit, and then the effective execution of the division of labor can be ensured through reasonable performance appraisal and incentive mechanism design. The project team transformed its own organizational structure and redesigned job responsibilities based on the scientific concepts and best practices of internal control and risk management. A good corporate governance structure is the basis and prerequisite for commercial banks to establish an effective risk management system. Jinzhou Commercial Bank focuses on strengthening bank governance, strengthening the functions of shareholders' meetings and board of directors, and improving internal control and risk management awareness from the source.

In the project, the functions of the board of directors and committees were further strengthened to ensure that the board of directors... >>

Question 2: How to prevent bank credit risks. Generally speaking, there are risks in loan business, that is, It is often said that risks are everywhere. Credit risks mainly include operational risks, market risks, etc. The current main risks of Postal Savings Small Loan should be moral hazard and operational risks.

Specific preventive measures cannot be stated in one or two sentences. There are many internal documents and regulations in this regard. You can ask the credit department for advice.

Question 3: Measures to prevent bank credit risks. In order to prevent bank credit risks, it is recommended to take the following countermeasures: 1. Strengthen credit education and advocate credit first. Cultivate citizens' awareness of credit and strengthen moral education on honesty and trustworthiness throughout society. Cultivate the credit awareness of enterprises and make them realize that good credit is the most important intangible asset. Cultivate the credit awareness of the government, its economic management, and judicial departments, so that they realize that social credit is the guarantee for establishing a standardized economic order. 2. Strengthen policy guidance and purify the credit environment. We will implement a credit disclosure system and comprehensively address behaviors that damage bank credit. Regularly organize and publish a group of corporate credit ratings in the news media, so that honest and trustworthy companies can receive more and better financial services and support; let untrustworthy companies be exposed and subject to joint sanctions. 3. Establish a credit record system to prevent banks from falling into the "credit trap". Commercial banks should learn from the experience of Western developed countries in building credit record systems, operate according to market orientation, establish specialized companies that operate bank credit information, carry out joint credit reporting business, and acquire all-round production of enterprises from enterprises, banks, taxation and other departments. Comprehensive information such as business conditions, honesty and trustworthiness, etc. are used to form customer credit investigation reports and at the same time establish an enterprise credit public information platform. 4. Straighten out property rights relationships and clarify the subject of bank credit relationships. Make state-owned enterprises and state-owned banks truly become market economic entities with complete governance structures, sound operating mechanisms, clear business objectives, and clear property rights relationships, thereby truly laying the foundation for bank credit transactions, so that the credit granting parties in credit transactions have clear property rights boundaries and can Independently assume corresponding responsibilities.

Question 4: How do banks prevent loan risks? The main measures for banks to prevent credit risks include: They should also strengthen the internal management of commercial banks and adhere to the established business direction to improve management capabilities. The details are as follows:

1. Further improve the separation of loan and review systems. Improving the system of separation of loan and approval should mainly focus on the following two aspects: first, formulate the principles and standards for approval to improve the efficiency of credit approval; second, establish an organizational model for approval and determine appropriate participants. Therefore, it is necessary not only to separate loan review and loan review, but also to cooperate with review and loan review to improve the scientific and standard review and approval system as soon as possible.

2. Establish a credit risk early warning mechanism. The establishment of a credit risk early warning system should mainly consider the following aspects:

① Establish an organizational management system for credit risk early warning.

②. Establish a complete and continuous risk warning database.

③. Improve risk early warning methods and measurement models, and focus on cultivating a team of high-quality talents engaged in risk early warning work.

3. Establish a credit exit mechanism. For some sunset industries, commercial banks must strictly control the increase in loans and reduce loans in a timely manner so that loans can be gradually withdrawn from these enterprises. However, due to the influence of the external environment, there will be certain difficulties in loan exit, which requires commercial banks to accurately grasp economic information and ultimately establish an effective credit exit mechanism.

4. Strengthen post-loan management and strengthen full-process control. As far as a specific loan project is concerned, the time from project construction and operation to loan repayment after the loan is far longer than the loan decision-making time. In order to protect the interests of the bank and achieve management objectives, post-loan management is very important.

Question 5: What is the significance of how to prevent bank credit risks? With the gradual improvement of the market economy and the deepening of financial system reform, the pace of transition from state-owned professional banks to state-owned commercial banks is also becoming faster and faster. As a result, financial problems accumulated over the years have become increasingly exposed, and potential financial risks have become increasingly apparent. For this reason, preventing and resolving financial risks is an urgent issue for state-owned commercial banks. They must pay enough attention and take effective measures to prevent it as early as possible.

1. Causes of credit risk First, it is a concentrated reflection of the long-term accumulation of historical problems. In the past, under the planned economic system, banks implemented hierarchical operations and hierarchical management. As a state-owned commercial bank, it has transitioned from administrative decision-making under the planned economy system to scientific decision-making according to standardized procedures under market economy conditions. In this process, the credit problems latent under the original old system have gradually been exposed, and their specific manifestations There are two aspects: First, corporate risks have been hidden for a long time, accumulated and then exposed in a concentrated manner, and non-performing loans appeared in a concentrated manner. Due to historical reasons, banks have established close relationships with state-owned enterprises. Most of the funds of enterprises come from banks, and most of the assets of banks are loans to enterprises. The two are closely related and have a close relationship. Under the planned economic system, enterprises carry out production and operation activities in accordance with national plans and with the main purpose of completing planned tasks. The products produced are uniformly allocated by the state and will not be unsold. Operating losses are made up by the state and do not need to be borne by the enterprises themselves. At this time, the business risks of the enterprise have not yet formed or have not been exposed. Corresponding bank loans are also risk-free or have less risk. However, with the deepening of reform, market regulation has replaced planned management. While enterprises have the right to operate independently, they must also bear the responsibility for their own profits and losses. As a result, the problems accumulated by the company over a long period of time began to be exposed. As a result, non-performing loans began to appear, and the business risks of enterprises were transferred to the credit risks of banks. Especially in the process of changing the operating mechanism of state-owned enterprises, a large number of personnel burdens, debt burdens, and social burdens left over from history have been left in the old enterprises, causing a large number of bank loans before the restructuring to be left vacant. Therefore, the current loan quality problems of banks are, to a large extent, the result of corporate operating risks that have been hidden, accumulated and exposed for a long time. Second, banks have issued many policy loans in the past, but now they have basically become non-performing loans. Before the promulgation of the "Commercial Bank Law", the status of state-owned commercial banks as corporate legal persons had not been established, and their independent operating rights had not been implemented. Many policy loans were issued under the administrative intervention of local governments. Especially before the establishment of the national policy bank, all commercial banks undertook a considerable number of policy loan tasks. These policy loans were issued by the bank to single enterprises and single projects after coordination by the government. The vast majority of these loans are very risky. A considerable part of the current loan quality problems are caused by policy factors. Second, it is closely related to the excessive debt and poor efficiency of state-owned enterprises. Under the planned economic system, state-owned enterprises rely on state fiscal allocations for their fixed asset investments and a considerable part of their working capital. By the mid-1980s, after the "appropriation to loans" was implemented, the government basically did not increase capital to enterprises, and enterprises expanded their sources of funds for reproduction, shifting from fiscal appropriations to bank borrowings. As the scale of production continues to expand, capital occupation gradually increases. However, the depreciation rate of state-owned enterprises is generally low, self-accumulation is insufficient, the asset-liability ratio is getting higher and higher, and they are increasingly dependent on bank loans, relying on a large number of bank loans to maintain production and operations. Especially in recent years, my country's economic development has encountered difficulties, and the reform of state-owned enterprises has been difficult. Most state-owned enterprises have suffered losses and poor operating conditions. The main part of the liabilities of these enterprises is bank loans, and short-term borrowings have been occupied for a long time, resulting in a serious lack of financial strength. The capital turnover is poor and the ability to resist risks is very low. When the market changes slightly and marketing difficulties arise, the movement of funds is immediately blocked and the solvency is greatly reduced, which directly affects the security of bank loan funds. In this case, corporate risks will inevitably be transferred to banks to a considerable extent. Even a few companies with good returns have high asset-liability ratios and heavy interest burdens, and it is difficult to recover loans when they expire. The companies can pay loan interest on time, but banks continue to grant renewals, and loan quality problems have not been exposed. That’s all. Once banks stop renewing loans, bad loans immediately show up. This is an important factor affecting loan quality. Third, it is related to the bank’s operation and management methods. The main manifestations are as follows: First, efficiency is given top priority in operation, while safety is ignored. The "Commercial Bank Law" stipulates: "Commercial banks take efficiency, safety and liquidity as their operating principles."

Putting efficiency first and safety second in terms of expression will have a certain impact on bank operations... >>

Question 6: How to prevent bank credit risks You can write a paper directly on this issue of control work

Go directly to the paper database to search

Question 7: How do banks respond to risks? Commercial banks are based on credit and operate money. A high-liability and high-risk industry that focuses on lending and settlement businesses. The operating characteristics of commercial banks and their key position and role in a country's national economy have resulted in bank operating risks being concealed and diffuse. Once bank operating risks are transformed into actual losses, it may not only lead to bank bankruptcy, but also And it will have a domino effect on the entire national economy. Therefore, establishing effective risk prevention and control mechanisms is of even greater significance to commercial banks.

The transformation process of my country's state-owned professional banks into state-owned commercial banks has been completed. The market-oriented elements of business operations have become more and more serious, while administrative overtones have receded. Especially under the current global economic integration pattern, international financial crises occur frequently. The current situation and the impact China faces from the international banking industry after joining the WTO require state-owned commercial banks to face up to business risk issues and improve risk identification and control capabilities as soon as possible. Due to the current lack of a complete social credit system in our country, the unclear property rights system of commercial banks, the yet to form an advanced and scientific operation and management mechanism, and the cost transfer of economic system transition, the risk management level of our country's state-owned commercial banks is lagging behind the international advanced risk management level. There is a big gap, and there is also a big deviation in understanding.

In order to establish an effective risk prevention and management mechanism, we should first establish advanced banking risk management concepts. The task of risk management is to find risk points in the business process, measure the risk level of the business, and create benefits from risk management while overcoming risks. Secondly, it is necessary to establish a comprehensive risk management method to integrate credit risks, market risks and various other risks, as well as various financial assets and other asset portfolios containing these risks, and the various business units that bear these risks into a unified system, and manage each Risks are measured and aggregated based on unified standards, and risks are controlled and managed based on the relevance of all businesses. Third, improve the risk management system. Adjustments need to be made from three levels: (1) To adapt to changes in the equity structure of commercial banks and gradually establish a risk management organizational structure under the management of the board of directors. (2) At the execution level of risk management, it is necessary to change the administrative management model, gradually realize the horizontal extension and vertical management of risk management, and realize the flattening of the management process on the basis of matrix management. (3) Change the previous rigid management model within commercial banks, implement a business process-centered management system, and continuously explore a risk management system centered on strategic business entities. It is necessary to gradually establish a separate risk management department in the business department, through which risk management policies are transmitted and implemented among various departments, and effective control is carried out from the source of business risks. Finally, risk management techniques must be improved. Use important advanced risk measurement and management techniques such as internal ratings-based approach and asset portfolio management.

To manage specific risks, we should start from the following aspects:

1. Prevention of credit risks

Credit assets account for 10% of the entire asset structure. With the acceleration of interest rate liberalization, the interest rate spread may become smaller, but it is still the highest-yield project and the main channel for bank funds. Preventing credit risks should be based on strengthening pre-loan investigation and pre-loan review and other prior work, focusing on: (1) Using international advanced technology and experience to establish a bank credit internal rating system and risk model that comply with international standards as soon as possible. Using quantitative methods to accurately price risks can not only improve the efficiency of asset business, but also set different asset prices according to different risk categories of assets. This can not only reduce credit risks, but also increase bank profits through product differentiation. Expand market share. (2) Establish a complete internal control mechanism and incentive mechanism, strictly control the process of loan and other asset businesses, and clarify the relationship between responsibilities and benefits, such as implementing post-loan accountability systems, separation of loan review and other measures. (3) Make full use of scientific and technological information means to establish and improve the credit risk monitoring information system as soon as possible, establish a basic customer database and develop a customer tracking system to achieve dynamic management of credit risks.

(4) By comparing the opportunity costs of asset investment plans, select a timely exit strategy to achieve the best asset allocation effect. (5) Use emerging tools and technologies to reduce and control credit risks and establish a scientific performance evaluation system. It mainly uses loan securitization and credit derivatives to achieve the purpose of early recovery of bonds and transfer of credit risks. At the same time, it establishes a performance appraisal system to achieve risk portfolio management.

2. Prevention of interest rate risk and liquidity risk

1. Establish a complete internal risk management mechanism. The improvement of the risk management mechanism is mainly to innovate the capital management system and change the long-standing state-owned commercial banks... >>

Question 8: What are the credit risk prevention measures for commercial banks in my country? The first point of credit risk is to minimize related situations. This is a related process to be done beforehand. It is very important beforehand and cannot be ignored. Doing it well beforehand can reduce many credit risks.

Beforehand, it is crucial for commercial banks to conduct relevant investigations and investigate the credit status of creditors. Try not to get loans from creditors with poor credit, otherwise it will increase the bank's credit risk. This must be made clear.

Secondly, to prevent credit risks, commercial banks must strengthen supervision over the process. It is not possible to just lend the money out and then ignore it and just sit back and relax. This is not acceptable. We must strengthen the supervision of creditors. This is necessary.

Supervision is to prevent the occurrence of moral hazard, and it will indeed have a certain effect. This will reduce the bank's credit risk. There are many ways to supervise, and it is necessary to maintain a relevant understanding of the dynamics of creditors at all times.

It must be clear that some credit risks will definitely occur, so relevant preparations must be made in advance. Certain preparations can reduce the harm of credit risks to your bank. It is necessary to establish a good risk prevention system.

How my country’s commercial banks prevent credit risks is an eternal topic and one that cannot be ignored. Strengthening supervision of yourself is key.

Question 9: The Importance of Bank Risk Management As we all know, the current credit risks of commercial banks mainly come from three aspects: First, credit risk. That is, the possibility of losses resulting from the debtor's failure to repay the loan on time due to various reasons. The second is market risk. That is, the losses suffered by positions due to market price changes, which include interest rate risk, exchange rate risk, price risk, etc. The third is operational risk. That is, risks caused by imperfect internal management procedures and non-standard internal operating procedures. Credit risk is the most common and brings the greatest losses to commercial banks. Operational risk is mainly caused by the bank's wide range of locations, varying management levels, and varying levels of leniency and severity. It is also a risk that is more likely to occur. Market risks arise mainly because my country's exchange rate and interest rate management have not yet been fully liberalized, and the losses caused in this regard are relatively small.

Judging from the joint-stock reform process and practice of commercial banks, in the fierce competition environment and ever-changing market conditions, if the credit risk management system is not perfect, the implementation is not in place, and the work intensity is not enough, these three major Risks will cause huge economic losses to commercial banks, and even lead to the collapse and bankruptcy of commercial banks. Due to historical background and objective reasons, the credit risk management of my country's commercial banks has always been a weak link, which is manifested in the incompatibility between scale expansion and asset strength, business development and risk management quality, and imperfect incentive and restraint mechanisms. . Therefore, if commercial banks want to carry out effective risk warning, monitoring, management, control, prevention and resolution, they must start from the following five aspects.

1. Build three lines of defense for risk management and form a full credit risk management process

In accordance with the internal setup of commercial banks and the principle of separation of loan review, there are account managers, risk managers, Three lines of defense for internal control and auditing.

The account manager is responsible for the management and maintenance of marketing and customer relationships, and organizes, analyzes and puts forward preliminary opinions on marketing projects and customer background information; the risk manager uses the written materials provided by the account manager as a basis without contacting the customer. Basic, conduct independent review and review on many aspects such as the customer's subject qualifications, financing background, project feasibility, legal compliance, completeness of the contract and property value of the mortgage, form objective and independent written opinions, reveal and predict risks degree, and propose measures and countermeasures to reduce credit risks; internal control audit is mainly responsible for inspecting and supervising whether the work of account managers and risk managers complies with laws and regulations within a certain period of time. Whether the entire operation and management process is in compliance with the law without the influence of policy factors To achieve the expected goals, if risks are discovered or major mistakes and losses occur, appropriate penalties will be imposed on the relevant departments or relevant responsible persons in accordance with relevant regulations. The above three lines of defense clearly divide the responsibilities between the three departments and between the positions, forming a separation of responsibilities, relative independence, and mutual restriction. [1]

2. Lay the three foundations of risk management and form a credit risk management culture for all employees

First, make certain investments to improve technological content and technical level. Form a database of a certain scale, continuously improve the measurement and analysis models of credit risk, market risk, and operational risk, establish and improve risk indicator identification systems, early warning systems, and monitoring systems, and improve the processing capabilities of various types of information. The second is to create a high-quality risk management professional team. Credit risk management is a highly professional job. Risk management systems, measures, dynamics and the entire operating mechanism must be implemented by people. Therefore, cultivating and cultivating a large number of risk management professionals is a basic requirement of risk management. The third is to establish a set of effective restraint and incentive systems. Make each business department and all the way down to each account manager understand the capital cost, expense cost, risk cost, etc., so that they can consciously handle the relationship between income and cost, market and cost when handling various businesses. The relationship between risks ensures the healthy and orderly development of various businesses.

3. Construct three levels of risk management and form a new vertical method of credit risk management

To achieve a long-term mechanism for credit risk management, it is necessary to change the existing methods of commercial banks Based on the independent management model of branches, we have established three levels of professional vertical management: Head Office Risk Management Department - Branch Risk Management Department - Sub-branch Risk Management Department to improve and enhance the intensity and speed of the implementation of risk policies. The Risk Management Department of the Head Office mainly formulates strategic decisions on risk management, formulates and modifies risk management regulations and business processes, establishes effective risk identification, early warning, measurement, monitoring and control systems, determines the risk level that the bank can withstand, and monitors branches and The person in charge of the risk management institution conducts performance... >>

Question 10: How do banks prevent the risk of credit card cases? In recent years, with the improvement and maturity of modern payment systems, various banking financial institutions The credit card business has continued to develop, and the credit card issuance volume and consumption amount of each card issuer have increased significantly. While it facilitates daily non-cash settlements for Chinese people, various types of illegal cash-out cases using credit cards are also on the rise. At present, due to the simple application procedures and low threshold for credit cards, especially for credit cards with large credit limits, there are interest-free regulations of a minimum of 25 days and a maximum of 56 days. Compared with the current difficulties in applying for small credit loans and high interest rates, the ability to cash out credit cards is The cost is very low, which provides favorable conditions for the breeding and spread of credit card cash-out illegal activities.

To this end, to prevent and control credit card arbitrage, we must start from multiple aspects and take effective measures to prevent it.

Strengthen supervision of card-issuing banks. Strengthen credit card issuance, review, post-maintenance and other management work. Each card issuer should, in accordance with the requirements of regulatory agencies, cancel the practice of solely using the number of cards issued as an assessment indicator, strictly manage and restrict the marketing activities of each bank's credit card direct sales team, strictly implement relevant regulations, and strengthen management work such as credit card issuance, review, and post-maintenance.

Strengthen the supervision and management of credit card marketers. Standardize the credit card marketing assessment mechanism and correct unfair competition behaviors. Strict supervision should be carried out on credit card marketers to prevent marketers from relaxing the verification of cardholders or even assisting in fraud in order to pursue business volume.

Strengthen customer information management.

Card issuing banks should track changes in cardholders’ important information, conduct comprehensive monitoring of cardholders’ card usage, promptly verify suspicious transactions, and take necessary measures for confirmed cash-out behaviors, such as stopping payments and reducing payment. Credit lines, etc. to control risks, and promptly notify relevant departments for joint processing.

Strengthen the supervision of special merchants and third-party payment service providers. Standardize the management of special merchants. China UnionPay and acquiring banks should strengthen the management of various special merchants, continue to monitor and conduct regular inspections, and prevent and control large-amount cash-out, fraud and other cases on credit cards. At the same time, the agreement should clarify the obligation of the specially appointed merchant not to assist the cardholder in cashing out and related liability for breach of contract. According to the scale and business type of the special merchants, a warning line is set for the single card payment amount and total POS transaction amount of the special merchants. Once the warning line is triggered, key real-time monitoring must be carried out. If problems are found, corresponding control measures should be taken immediately, and confirmations will be made in a timely manner. Special merchants who cash out are included in the "blacklist".

Strengthen collaboration with tax authorities. Conduct a matching analysis on the POS transactions and tax payment situation of special merchants. If the total POS transaction volume is seriously inconsistent with the tax payment situation, focus on monitoring and verification. At the same time, the management of the refund behavior of special merchants should be strengthened. The acquiring bank and the special merchants should make it clear in the cooperation agreement that for returns of consumption paid by card, the return money should be returned to the credit card account.

Increase the joint crackdown on credit card cash-out. Carry out special rectification activities in a timely manner. The rectification of the problem of credit card cash-out is a systematic project, which should be carried out internally by various banking financial institutions and industry organizations with the support of the People's Bank of China, the China Banking Regulatory Commission, the public security organs and other departments, and a collaborative mechanism should be formed. Financial regulatory authorities should regularly carry out special rectification actions in the credit card market.

Strengthen media supervision. The People's Bank of China and relevant departments should cooperate with each other to clean up and investigate advertising information on print media and online media. In recent years, advertisements such as “Credit Card Cash Out Service”, “Financial Company Cash Service”, “Credit Card Double Cash Withdrawal”, “Worry-free Credit Card Repayment” have appeared in some areas of the country. In fact, companies or individuals assist cardholders to transfer their credit card of overdraft facilities converted into cash.

Vigorously carry out missionary activities. Financial institutions should carry out extensive publicity and education activities to make all sectors of society understand credit cards and use credit cards correctly to avoid losses caused by improper use. At the same time, a reward mechanism can also be established for reporting cash-out cases, that is, announcing the cash-out reporting phone number and email address to the public through news media and corporate websites, guiding the public to actively report, and rewarding those who report meritoriously, in order to improve the investigation efficiency of cash-out cases.

Accelerate the improvement of the personal credit reporting system. At present, our country still lacks a complete personal credit system, and card issuing banks operate independently. The same applicant can apply for credit cards at multiple banks. The credit limit enjoyed by the cardholder may greatly exceed his or her repayment ability, which may easily lead to the occurrence of "using the card to support the card". Credit card cash out case. Therefore, a credit card information sharing mechanism based on the personal credit reporting system should be established and improved, and a total personal credit limit should be set to facilitate the card issuer's inquiry and verification, and to avoid repeated card applications for the same customer.

Meanwhile, banks...>>