Study On Foreign Guarantee Risk Management Of A Bank

The Guarantees that issued by the banks to credit the payments has been used increasingly for the foreign trade. Due to the characteristics of its reliability, adaptability and creditability, bank guarantees has become the most widely accepted tool, which play the irreplaceable role in terms of the trade promotion and foreign trade contract assurance. This thesis is based on the rationale of bank guarantee, as well as risk management theory for the banks. The challenges and circumstances of foreign guarantee is emphasized; based on risk compiling and analysis through the case studies and actual business studies, the thesis has proposed the suggestions and solutions in regard to the risk scrutinizing and risk prediction, which would be useful and helpful advice for A Bank's future exploration of the foreign guarantee.Opening to the world of China will extend to the wider sectors both in terms of width and depth in the globalization background; both inward and outward investment will be reinforced, the trade exchanges, labour export, technology transfers, EPRs and co-operations will be increased. In this circumstances, A Bank utilized these opportunities and the Dalian Port, and focuses on the development of the international bank guarantees, however, the challenges of legal compatibilities, compensations, credit risks of the trusters and trustees have increasingly emerged, which would cost the bank's customer service quality downgrade, the banks creditability damage, and financial loss. The foreign banks are expanding their businesses in China; they have strongly focused on their experienced international trade market related business. A Bank, one of the leading state-owned banks, as the key guarantee for the national economy development, has achieved the commercialization. The bank has set up the strategic partnership with the international players and become more international. There are the intensified competition and development opportunities in the current economy environment for A Bank. The business of Bank Guarantee has become one of the major income generators due to the high return rate, as well as the bed of competitions with the other state-owned commercial banks and foreign banks.In summery, the theoretical study of risk and solutions of the bank guarantee is of great significance for A Bank.