A factor evaluation model of risk exposure to the issue of cash cards － an example of Cosmos Bank

• Main Authors: Chin-Wen Cheng, 鄭欽文
• Other Authors: Her-Jiun Sheu
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/01804584874825319336

碩士 === 國立交通大學 === 經營管理研究所 === 94 === In light of increasin ge prospect customers g popularity of cash cards adoption, banks are seen issuing cash cards and encoura to hold multiple cards through relaxed approval and credit reference procedures, simply to attain market shares and making the goal on new issues. However, the above behavior has significantly undermined the creditworthiness of issuing banks, leading to increased outstanding debts, and thus higher risk of bad debts each year. Therefore, how to concurrently manage risk exposure to outstanding bad debts while augmenting new card issues remains a missing piece from the puzzle for banks. An audit system and risk evaluation model, therefore, may simply help the banks to solve this puzzle . Ever since the outburst of the twin cards tornado, cash cards is transforming from cash cow to a trouble maker..The purpose of this study is to provide a whole completed set of lending valuation model in which the main features of cash cards are incorporated and lending risks are diversified. Among the main features are: providing the smallest operation cost and the fastest approving speed, reducing the loss of slack cards and increasing operating profits. We have seen that most of the domestic research on credit endorsement are focusing on Logistic Regression、Regression. Analysis、Discriminate Analysis、Probit Regression model , etc . on the early stage. For Logistic Regression、Regression. Analysis、Discriminate Analysis、Probit Regression model , and so on . Statistics methods are targeting on assessing corporate credit built by financial variables, this can only provide a credit endorser an unilateral evaluation. Nonetheless, it could not provide a bank a precise reference for decision making during credit endorsement. This research reports the results of business loan process by the bank where the Factor Analysis Method , Analytic Hierarchy Process （AHP） technique were employed to evaluate the business loan . This research is based on 12 credit cards issuing banks. Target surveys have also been conducted among the cash cards endorser in these 12 banks. Credit card payment is the most concerned factor after the aforementioned surveys. The second most influential factor in credit cards endorsement is the applicant’s educational background. Prior to the imposition of applicant’s collateral, educational background was still one of the most concerned factors in assessing one’s payment ability in Taiwan. Many researches in the past have shown that applicants’ age may impact the level of bad debt significantly. However, credit endorser concerns less about the applicant’s age in this research .