Strengthening Risk Management,Boosting the Bank Card Industry Scientifically——“China Financial Forum: Boosting the Bank Card Industry Scientifically” Seminar held in Beijing
The “China Financial Forum: Boosting the Bank Card Industry Scientifically” Seminar co-hosted by China Financial Publishing House and China UnionPay was held on Jun.30, 2009 in Beijing. Delegates from the People’s Bank of China, the Ministry of Commerce, Commercial Banks and POS industry companies and scholars in the relevant field took part in the seminar and delivered speeches.
Su Ning, the Deputy Governor of the People’s Bank of China, pointed out in the substantive speech that the Chinese bank card Industry, which was started in the last 80s, now become a significant component of the financial industry with the last over 20 years’ development, especially the rapid expansion in recent years, and contribute to the boosting GDP and improving living quality. Despite the risk indicator’s sharp rising of the developed countries and US’s credit card industry, which resulted from the global financial crisis, Chinese bank card industry develops fundamentally, speedily and steadily. However, several factors constrain the further development of the bank card industry, among which the criminal activities using bank cards became most severe. To solve the problem, the related parties should conscientiously implement the Notification of Strengthening Bank Card’s Safety Management, Preventing and Combating Bank Card Crime jointly issued by People’s Bank of China, China Banking Regulatory Commission, Ministry of Public Security and State Administration for Industry and Commerce, and should counterfeit the bank card crime with joint efforts in accordance with the law. Particularly, first, the quantitative goal and responsibility system of concerned with the maximum losses should be formulated; second, the measures of investigating liabilities of card issuers and recipients should be introduced; third, the card issuing management should be regulated at the core of carrying out real-name and customers’ identification methods; fourth, the information security of the card-holders should be secured by preventing illegal information appropriation; fifth, the transactions and usages of the card should be monitored in order to alert the related parties and guard against the bank card risks; sixth, the platform of sharing bank card risks’ information should be established concerned with the market risk management; last but not least, the methods of inspection in order to close the loopholes should be emphasized to strengthen the inspection and supervision of the bank card market.
Wei Gejun, the editor-in-chief of China Financial Publishing House and China Finance, hosted the keynote address. Zha Zi’an, the deputy editor-in-chief of China Financial Publishing House, also participated in the seminar. Xu Luode, the president of the China UnionPay, hosted the round-table meeting of the seminar. Persons in charged and scholars involved investigated the current policies concerned with bank cards, supervision of the banking industry, expansion of the cards held by the national budget holders, and combating against the fraud bank card crimes. Also, delegates from China UnionPay, commercial banks and POS industry companies exchanged their experiences in bank cards’ operation, management, innovation, and risk prevention.
The conclusion drawn after the meeting was that Chinese economic and financial development was facing austere challenges due to the global financial crisis. The new economic and financial environment has brought difficulties for the bank card industry’s further rapid development; however, a series of economic policies including expansion of the domestic demand and promoting service industry also brings opportunities to the bank card industry. Currently, associating with other commercial banks, China UnionPay established the domestic standardized risk management system and affiliated management codes in possession of intellectual property, operating the “five systems with one center” to manage the bank card risks (Five systems are: the system of risk information sharing, the system of risk report and management, the system of fraud detection, the system of monitoring the merchants’ risk and the system of risk control based on public services platform; One center is China UnionPay’s prevention of fraud service center. ) The merchant banks, police, and China UnionPay has been forming the mechanism of “co-preventing the risk by sharing the information, co-disposing the fraud cases by immediate reaction, co-publicizing the ways of using bank cards securely by popularizing”. In addition, related parties were now discussing the judicial interpretation targeting the bank card crimes like cashing out the credit cards. Some delegate suggested that the relevant parties should enhancing cooperation, improving the ability of risk prevention as well as the quality of management and operation since the bank card industry was now facing tremendous challenges as well as opportunities, thus the bank industry could stimulate the consumption, domestic demand and the overall economy.
The seminar was co-organized by China Finance Magazine and Financial View Magazine and sponsored by Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Bank of Communication and BPMC (China Banknote Printing and Minting Corporation) Credit Card Corporation.