Export L/C Risks And Guard Measures Of Agricultural Bank Of China Sichuan Branch

Along with the good development of the international economy and steady expansion of international trade China' s foreign trade has shown a good trend. L/C as main international trade settlement ways will also obtain more and more widespread use. The international business of ABC Sichuan branch starts lately and the development rapidly. Exports L/C have the core business of international business. Its risk grows day by day obviously with business volume year by year. This article has mainly used methods of material research, case analysis and theoretical analysis to elaborate emphatically the exports L/C operation flow of the Sichuan branch and the present export L/C risk of Sichuan branch, analyze three illustrative cases and give the export L/C business specific guard measures of the ABC Sichuan branch. Finally this paper put forward the reasonable proposal for the exporter to receive safely.The first part of this paper is the introductory remarks, discussing the following issues: 1. the goal and significance of researching this article; 2. method and content of researching this article; 3.synopsis of the ABC Sichuan branch; 4. synopsis of the ABC Sichuan branch international business.The second part carries on an outline of the L/C and introduces the L/C concept, characteristic, processing flow specifically and the litigant and the type. Also in detail introduces exports L/C processing flow of the ABC Sichuan branch including the exports L/C advising and cancellation, the documentary evidence verification, reimbursement claim as well as receives and receives after dunning and so on.The third part detailed analyses three main exports L/C risks of the ABC Sichuan branch including: 1.soft provision risks, introduced definition and the characteristic of the soft provision, risk and the recognition of the soft provision and analysis a typical soft provision risk case of the ABC Sichuan branch; 2. L/C verification risk including four kinds international popular documentary examination standard and the risk which examines in the single process of the ABC Sichuan branch and analysis a illustrative case about document not compliance with the L/C; 3. operation risks, mainly introduces my good foreign exchange controls risk, the operation risk for human factor and L/C cheat risk and analyses a typical case finally.The fourth part proposes the practical and feasible guard measure aiming at the exports L/C main risks of the ABC Sichuan branch. The ABC Sichuan branch must reform international business risk management system, and establish a future-oriented comprehensive risk management system: building an advanced risk management, improving operational processes, training high quality talents and guarding against the risk.Based on the risk analyzing and improving suggestions, I believe that although there are some risks in the ABC Sichuan branch' s export L/C business, it will achieve long-term sustainable development, on the basis of the risk alerting & controlling mechanism and advanced risk management.