International Trade Financing Innovation And Risk Control

International trade finance is a kind of loan provided by banks to importers and exporters concerning import and export settlement On one hand, it's a more ideal way for modern banks to utilize their capital for high earnings, rich profits and comprehensive benefits. On the other hand, it effectively solves the problem of capital shortage of foreign trade companies, strengthens their advantages in negotiation, enable them to develop international trade in a more wide scope and large scale. At the same time, it's part of a country's policy, one of the active means to encourage export, capable of adjusting the import and export structure and promote a country to effectively participate in international trade.With the enhancing internationalized economy and membership to WTO, our foreign trade expands rapidly. While making contributions to the national economy, it also opens a broad market for banks' trade finance business. In 2002 our trade volume reached $620.8 billion, 30 times that ($20.6 billion) of the early stage of reform and opening-up. The traditional ways of trade had failed to conform to the increase in import and export, the change in trade methods and the import and export structure. There's an imperative need for a much more and newer way of financing.There exist fierce competitions in China's financial market as foreign banks are pouring in. As there're many differences between foreign banks and ours, it's unavoidable that our domestic banks would be put in a disadvantageous position if essential progress in financial innovations couldn't be reached. Innovating the variety of financing is also the effective way to hold our stand. Only by good cooperation between finance and trade can economy, trade and finance have more fast development. Many domestic companies have gained a lot of experiences and lessons recent years attempting and exploring ways as to how to effectively develop trade finance business. But generally speaking, the development is tooslow that it can hardly meet the needs of the development of foreign trade. The international trade finance takes only 3% of all kinds of bank loans, and the income can't be less in the total income of our banks. Whereas some foreign banks' income from it takes 40%-80%.What's restricting the development of international trade finance? Scientific, convenient and workable management system and methods of trade finance can only be brought up through comprehensive and deep study in terms of theory, law and practice. This way we can develop international trade finance effectively so as to support the import and export of our country and promote banks to switch to international commercial banks."International settlement" is the specialized course I teach. I often go to business departments to learn about the conditions in order to integrate them with my teaching. I always have the feeling of shallow understanding of it as lack of practical experience. In the early time of selecting the topic I intended to work out something in this field, first, to solve the actual problems, and second, to help my teaching. I find out during my research that there haven't been many books and papers on foreign trade financing over a long period of time, and study on it from the perspectives of banks is next to nothing. Then I decide to base my study of it on banks from the aspects of finance, management and law, combing theory and practice. I wish my work on it would be of significance practically and academically.Key points of studyIn my study on this subject I hope to illustrate the function of the features of international trade finance, solve the problems in management that detain the development of it, propose management system of trade financing that suits our country's situation. Key points of study are as follows:1.Studying the necessity and imperativeness of international trade finance innovation under current situation. Stressing the significance innovations have on banks, import and export companies and the whole national economy.2.Analyzing...