The Discuss To Risks And Preventive Measures Of Credit Financing Facing In Bank

With the coming of economy globalization and informationization, international trade shows a good situation of flourishing and happens anytime and anywhere. It not only promots the economic intercourse between countries, but also impels the development of the world economy.Although the international trade plays important role on the big stage of the world economy, at the same time, the problems that may cause have obtained more and more attention. Among which financing problems on international trade are warmly discussed, especially the financing in the 1/c has been the important subjects for many experts to study.Along with the development and innovation of the trade, financing presents its diversity. However financing risk gradually reveals, especially since the outbreak of the global financial crisis, which has appeared the grotesque faces and made us feared. Thus, it is necessary for us to study risk forms and control measures in the new economic and political situation.The financial crisis, which triggered by the U.S. subprime mortgage crisis, spread quickly and became the global economic crisis. Its main performance is that thousands of banks and large enterprises bankrupt overnight, then a lot of letters of credits can not be duly paid, so most of the financing credits become non-performing loans, therefore, financing problems of L/C are more and more intractable.Another problem is that after the worst stage of the econmic crisis, most developed countries, in order to revive the economy and protect domestic industries, have taken trade protectionism. The world trade frictions happen frenquently between China and other countries, antidumpings and antisubsidy are widely appealed to. Especially these days, most western countries even many Asian countries impose high punitive tariffs on goods imported from China following on the heels of the United States, which is the foreign trade environment we have to confront. Therefore, under the new political and economic situation, international trade problems are still thorny, we should pay more attention to problems of financing in 1/c.The relevant credit financing mainly includes:the export negotiation, packing loan, forfaiting, import trade financing etc., each has its own clear characteristic, and to the banks, the risk types have generality and individuality.The author adopts and integrates the points and opinions in the credit from many experts, puts forward the financing risks and control measures under today's specific political and economic environment.The subject is devided into four parts to analyze and discuss. The first part is the simple introduction of credit financing, letting the beginners who getting in touch with the issue understand its explanation under the international practice, know its basic characteristics, functions and major types.The second part discusses that the credit financing now has been occupied the important position and is in a rising status in the foreign exchange business, as well as the benefits of the credit financing will bring to the enterpeises.In the third part, the author mainly analyzes that the risks may encounter when the L/C financing is handling. In this part, the author suggests his own opinion, adds risk compliance checks on loan business which has been ignored by some scholars, then unites the international business processing performed by the settlement clerks with the credit investigation performed by the lending clerks to the analysis of the operating risks.Aiming at the trade frictions which has been emerged frequently as anti-dumping and anti-subsidy in international trade in recent days, as well as the lists of sanctions and antiterrorism expand by the UN, the author takes the country risk as an more important one to point out. Additionally, the author also explains reputation risk of bank.In the fourth part, for the prevention measures, the author's view is slightly different from many scholars'. According to the characteristics of the international trade, such as short-term, high-yield, self-liquidating, the author holds the customer credit granting management analysis as an important aspect of the risk compensation.Morever, taking the examples from the risk management, the author brings forward the views of diversification and transferring of risk on business handling, introduces the solving methods including syndicated loans, credit insurance financing, export risks participation,etc.In the prevention of operating risk, the author suggests banks should strengthen management of audit and establish responsibility tracing mechanism which not only can be against the operating risk, but also can partly reduce market risk, legal risk, and country risk.The author hopes that the bank employees who work in the international trade business can benefit from the views and opinions in this article. They can adopt effective measures to reduce the happen of risk to an extreme in daily work. Meanwhile, the author hopes that the people who is engaging in the international business can be cautioned from this article. Morever, the author hopes this article will be helpful to the people who concern and study the international trade.