A Primary Research On Risk Management Of Trade Financing Of City Commercial Bank In China

International trade financing 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. For recent years, many domestic City Commercial Banks have been experimenting and exploring how to develop trade financing business efficiently and have got certain achievement. But generally speaking, the development of international trade financing business is kept in a comparatively lower speed, and with the entering of foreign banks, the competition in China financial market will become fiercer. On the background of late starting-up of international business of City Commercial Banks, non-developing meshwork of correspondent banks and lacking of foreign business operators, the insufficient understanding and precaution towards risks of trade financing business will bring heavy loss to the assets of City Commercial Banks. Therefore, how to realize and prevent the risks of trade financing business is a problem that requires immediate attention and research of City Commercial Banks. This thesis is a systematic and general introduction of international trade financing, which describes the international trade financing development and tendency in detail. It expounds the varieties of international trade financing business by classifying it into import and export areas and also comprehensively analyses the risks'varieties and causes which banks and enterprises will come across in the process of developing international trade financing business. The thesis gives a classified discussion on how to prevent the risks of international trade financing business and proposes methods of settlements. It also gives suggestions to City Commercial Banks on how to face the new tendency and problems of present international trade financing business. The writer tries to use ration basis for the judgement and determination on comprehensive credit extension risks of international trade financing of City Commercial Bank through transverse (i.e. different enterprises) and lengthways (i.e. different time) comparisons by using CCFR model. In the end, The writer express the benefit of international trade financing through analyzing the case on comprehensive credit of financing which granted by WHC Bank to WG Company.