| Trade financing business all along has been an important part of the commercial bank credit business, and its lowrisk, highprofit, quick turnover, and to promote foreign exchange intermediary business, and other characteristics draw more and more attention of the commercial banks. In recent years, with China's openingup and entering into WTO, along with the development of international trade, trade financing has shown new features: I. With the reform of financial system and the pace of financial liberalization accelerating, domestic banks with trade financing business has shown a trend of diversification; II. Domestic commercial banks attach great importance to the trade financing business, which results the fierce competition in this field; III. The products in trade financing business progress with each passing day, showing the trend of diversification.On the whole, the current development trend of trade financing business mainly in: I. The form of trade financing to the direction of diversification and complication; II. Accountreceivables financing has become the main trend; III. The rise of structural trade financing; IV. The enhancement in the liquidity of Trade financing assets; V. Diversified risk control measures; VI. Applications of Electronic information technology in the field of trade financing become more and more widespread.The trade financing business of CCB, Jilin branch conforms to this trend, based on the CCB head office, realizing a certain degree of development. Jilin branch started international businesses in 1988. After 20 years of development, the volume of trade financing business from the initial tens of thousands of dollars to hundreds of millions of dollars, and trade financing products from letters of credit to trust receipt loan, shipping guarantee, packing loans, refinancing, the international factoring, and so on. At the same time, the operating platforms of trade financing become increasingly advanced, including the basic international settlement system, company loan operating management system, the credit risk rating system, which greatly prompt the development of trade financing business in JILIN branch.However, due to the overall external environment, the objective and subjective reasons in the interior of Bank, the great pressure of business development and profitsincreasing , and many deeprooted contradictions , trade financing risk management has become a weak link in the whole trade financing process management. Therefore, to strengthen trade finance risk management for the Jilin branch is of great importance in order to improve credit management businesses and enhance the competitiveness power in the market as a whole.At present, the development of trade financing are confronted with the following major risks:First, credit riskCredit risk is still the primary risks facing the trade finance business, which can be divided specifically into corporate credit risk, Bank credit risk, credit risk of countries. First corporate credit risk mainly refers to the credit risk of the two parties in the transaction. since the bank provides the clients with trade financing, if the applicant's own poor financial situation or the counterparty in the trade delays payment or refuses to pay ,the risks are likely to happen for the bank; then the credit of the exporter's and the importer's bank, if the bank's credit is not good, and unreasonably refuse to pay or the banks themselves bankrupt, closed down, and so on, the receivables become bad debts, eventually the banks will suffer great losses; finally in the financing of international trade, if the coup took place or the capital been frozen in the country where the trader belongs, which makes the international trade contracts difficult to carry on, the exporter can hardly receive the proceeds, and it brings the financing bank with great risks .Second, market riskMarket risk refers to that after the bank releasing loans for the applicant, due to the severe turbulence of commodity price in the international market, or a sharp exchange rate fluctuations, the applicant may refuse to repay the financing under the trade, which leads to risk exposure.Third, operational riskInternational trade financing business relates to credit, approval, International Settlements, accounting and other steps. It has high requirements for internal control management and operations. The errors resulted in the process of credit, approval, international settlement, and accounting will lead to mistakes in the business handling. And if the control measures come apart, it will directly affect the safe recovery of financing capital or cause losses.Fourth, the law risksTrade financing business involves much more complicated legal relationships compared with the traditional financing. In the international trade, if you are not familiar with the legal environment of your counterpart, once the trade disputes arise and conflicts with the law of the country, it will be very detrimental to the settlement of disputes, which may affect the smooth movement of the international trade under which the financing was carried on, and further affect the safety and recovery of the financing capital.The causes of these risks mainly include the following:I, lack of understanding in the applicant's credit; II, risk management can not reflect the characteristics of trade financing; III, backward technology; IV, ineffective management of internal control, and Operating against rules; V, The quality and level of the employees needs to be enhanced.For Jilin Branch, how to identify trade financing risks, and lay down risk control program according to the characteristics of the business development, has already become the key link of the trade financing management. In response to the analysis above, here major risk prevention measures have been proposed:First, risk prevention in issuance of L/Cthe following major points should be heeded during the establishment of L/C risk control mechanisms:i, the importers'the credit situationii, the imported goods and the market situationiii, the authenticity of the trade backgroundiv, to strengthen the links in examination and approval management, to improve the quality of personnel, and to prevent the risk of operationSecond, risk prevention in trust receipts loansthe following major points should be heeded during the establishment of trust receipts loans risk control mechanisms:i, strengthen process management and operational risk controlii, strengthen trust receipts management and prevent legal risks Third, risk prevention in the packing loan the following major points should be heeded during the establishment of packing loan risk control mechanisms:i, the exporters'credit conditionsii, strengthen the supervision of the use of packing loan to prevent customer fraudingiii, strengthen the management of issuing bank, and strictly review the types of letters of creditFourth, risk prevention in the export negotiation the following major points should be heeded during the establishment of export negotiation risk control mechanisms:i, strengthen the management of issuing bank, and strictly check up documentsii, strengthen credit review and reduce operational riskiii, monitor the export proceeds for the repayment of the loan... |
PDF Full Text Request