Feyezhe report says banks need bank to consume credit risk

Feyezhe Bank Risk Control Quarterly report that China's rapid growth in consumer credit needs to fully understand the credibility of consumers, "Caixin Network" (intern reporter Yang Kiuxin) November 4, Feyezhe issued a bank risk control quarterly, said that in 16 listed banks average profit of 30% growth rate,　　The growth of consumer credit will be the biggest challenge to China's banks ' profitability. Feyezhe Bank Risk Control Quarterly report points out that the surge in consumer credit deserves the attention of China's banking sector.　　In the face of the "avalanche" of consumer credit growth in China's credit market, it is a challenge for the Chinese banking industry to have a full understanding of the creditworthiness of these consumers and to give them appropriate credit lines before they can pass the credit card or credit approval. By the end of last week, the 16 banks had all disclosed their quarterly results, exceeding market expectations. According to statistical data, the average net profit growth rate of 16 core banks has reached more than 30%. Bank of BOC, AgBank's performance is particularly prominent.　　The two lines of assets of the first breakthrough of 10 trillion yuan, respectively, the net profit of 27.222 billion yuan, 24.31 billion yuan, the year-on-year growth of 29.3% and 30%, set its all-time highest quarterly profit. The report found that China's credit market and other countries in the credit market presents a different trend. U.S. consumers are looking for more consumer credit, and credit institutions are wary of credit audits. China, in contrast, is easier for consumers to use consumer credit.　　China's consumer credit has grown 200 times-fold in the past decade. "The development of consumer credit brings opportunities to the banking industry, but opportunities are often accompanied by challenges."　　Wu Xishi, president of the Greater China region, said. In China, he argues, tens of thousands of credit cards or credit applications are submitted to credit agencies every month. It is very dangerous to develop consumer credit blindly without reasonable insurance measures and risk control measures around the credibility problem of consumers ' uncertainty. In China, credit card-related fraud levels and bad debts are rising.　　Banks must now face two key questions: how to ensure that the loans that are released can be repaid and how to reduce the risk of fraud. Feyezhe Corporation (NYSE: FICO) is an industry expert providing technical support for analysis and decision management in the financial industry.