The Crisis and Risk Management behind Chinese Credit Card "Enclosure"

According to the profit and loss model calculation of credit card issuer and acquirer, banks in China mainly rely on expanding the scale to achieve profitability. The status quo drives major banks embarked on credit card enclosure movement. However, there are huge crises hiding behind the enclosure, so the construction of credit card security system has currently become a top priority. The paper analyses the data to put forward that the most important responses against the crisis includes strengthening the applicant credit review and establishing a credit supervision system.