Strategy Studying For Developing International Trade Finance Business Of Commercial Bank In Our Country

After joining WTO,the quantity and range of foreign trade of our country expands rapidly,subject of foreign trade expands at many levels,means of international settlement appeared diversification and the new business have been put forward constantly accordingly,the international trade finance way corresponds with it,demonstrates unprecedented variety,complexity and specialization,its potential risk is in constant growth and changing too. To commercial banks of our country,Developing international trade finance business actively and reliably not only can find the new way for the credit funds, but also can drive international settlement, increase the middle income and expand market share through it.With the development trend of the economic globalization, this business is becoming one of the focuses of competition for domestic and international commercial bank. How to hold international trade finance business in order to meeting market's needs and customer's demand,obtain the finance benefit and intermediate income in maximum, take precautions against and control the risk brought in business development and innovation at the same time,which is a question that especially merits attention. â… Introduction of International trade finance International trade finance is the convenient to fund circulating or credit correlating with foreign trade to the importer or the exporter provided by bank. It is based on international trade when bank provide convenience and fund for importer and exporter before shipment or after shipment to heighten credit record, help to improve the asset debt framework. The main characteristics of international trade finance include the complexity of the main object, regular trade backgrounds in the finance business, high risk, being controlled,a fiduciary loan in surface,but a loan of the guaranteed condition actually. International trade finance can be divided into different kinds according to different method. It is divided into short-term international trade finance and long-term international trade finance according to time limit of finance. It is divided into general trade finance and finance with policy trade according to the capital source of finance. It is divided into trade finance and export trade finance according to finance target. It is divided into fund circulating and credit circulation according to the form of expression of finance. â…¡Analysis on status of international trade finance business carried by commercial banks in our country The characters of international trade determine its status in banking business. International trade finance influences the development of the international settlement business directly. The risk of international trade finance is more little, make profits generously , helps to absorb the deposit, strengthen the fund strength of the bank, helps to improve the assets quality of the bank, helps to improve the operation ability of the bank. The international trade finance business is divided into traditional and new business. The traditional business means that runs time relatively long, handle quantity more, mode comparatively ripe including issuing accrediting amount, export credit, bale loans, bill purchased, note discount etc. The new business of international trade finance means that every domestic commercial bank runs less at present, with high technical advantage, relatively risky including international factoring, forfeiting and structured trade finance (STF)which is fresh to us. In the whole, the development of international trade finance business in our country still lag behind. Innovation is not only necessary but also urgent in front of keen competition and quick development of international trade. There are some outstanding problems at present for commercial bank of our country launching the international trade finance business. The form of the finance business is simple. The finance target is too centralized. The management of the finance business is extensive. The quantity of finance business is not in conformity with potentiality that market offers. Risk management is not complete, even the case take place repeatedly. â…¢The existing problems of developing international trade finance business for commercial banks and countermeasures The existing problem and disparity comparing with advanced bank in developing international trade finance business are as follows. First, international trade finance business has not been paid enough attention. second, the operating of international trade finance has serious restrictions. third, the means of controlling risks lags behind. Fourth, the talent of finance business team is weak. The fifth, the legal environment of the finance business in our country is not perfect. In the end of this part, I put forward eight suggestions against the existing problems aimed to reform operation mode of international trade finance. First, improve the understanding of developing international trade finance business. Second, expand the major international trade finance business in more effective manner, and let it comply with our country. Third, promote staff members' professional qualifications. Fourth, upgrade the idea of managing and exert the whole advantage. The fifth, make customer's evaluation criterion which accords with the characteristic of international trade finance;The sixth, launch cooperation of various forms in many aspects according to market strategy. The seventh, strengthen the study on current laws and regulations. The eighth, strengthen the study on risk management of international trade finance business. â…£Risks analyzing of International trade finance business in commercial banks and precautions As the amount of international trade finance business raise, the risk management level lags behind, and may become a new risk point. The risks in doing this business include credit risk, market risk, national risk, exchange risk, legal risk and operation risk and so on. After analyzing the cause of risks from aspects of consciousness, management system, personnel's quality, environment, we came to the conclusion that we should improve the following aspects. First, reform risk culture, build good risk control environment. Second, award the credit count in unison, standardize the finance business approval procedures. Third, improve the technological means that the risk monitors and controls. Fourth, strengthen the cooperation levels of every business decision, control in real time and dissolve the risk. The fifth, apply standard management method into risk control and precautions in a creative way and establish the internal control system of commercial bank. But because the foundation of internal control system is one enormous project which involves every aspect of operational and managerial activities in banks, the commercial bank can choose the international trade finance business as a pilot project. When condition ripe, the whole bank can popularize, and commercial banks can set up overall risk management system on found of it. The most characteristics of the commonly used ISO9000 management standard is applying "course method" and "management systems approach" to standardize the policy, goal, organization,...