A Study On The Legal Risks Of Banks In The Financing Of International Trade Accounts Receivable

There are more and more receivables produced in the international trade with the in-depth development of the economic globalization. In order to facilitate the flow of funds, it is necessary to use receivables for financing. In practice, the common modes of financing for receivables in the international trade include international factoring and forfaiting. International trade receivable financing is a cross-border financing which brings more and larger risks in relative to domestic financing. In international factoring and forfaiting, the legal risk is mainly concentrated in the bank which acted as an intermediary. This article aims to discourse the legal risks of bank in the international trade receivable financing, propose the corresponding preventive measures, and put forward suggestions on the development of the receivable financing market of China.This article consists of five parts, among which, the first chapter mainly introduces the related concepts including receivable, International Factoring and Forfaiting, various legal relationships in International Factoring and Forfaiting, which form the theoretical basis for the following discussions. The second chapter, the third chapter and the fourth chapter, as the core of this article, discuss the potential risks of bank in the International Factoring and Forfaiting business, and then raise constructive comments in response to the above risks. The risks in the second chapter are based on the receivables themselves, the risks in the third chapter are conflicts of right in the assignment of receivables, and the risks in the fourth chapter are caused by the parities of contract which generated the receivables. The last part focuses on the specific circumstances in China.