Commercial Banks In The International Factoring Business Risk Analysis And Prevention,

For the profit space of commercial bank's traditional assets and debts business becoming lower and lower, the commercial banks are crying for a new profit-growth point. The middle business is more important to the commercial banks. As a high brimful middle business, the development of factoring is actual to commercial bank. Furthermore, along with the full openness of our financial business to the foreign companies, the middle business is becoming a very competitive field, especially for the trade financing business.International factoring has become an important way of settlement in international trade. From the view of law, it is a kind of comprehensive financial service provided by banks, which deals with the receivables produced along with the basic trade. In the service, what banks mostly encountered are credit risks. That is, as factors, the banks may meet with the potential possibility that their customers won't fulfill their obligations or will fulfill them improperly. Once it turns into reality, it will bring economic loss to the banks directly. In essence, it is a kind of default risk, which includes importer's, exporter's, and corresponding factor's credit risks and national risk. The solution lies in building up relevant legal precautionary mechanisms against them.At the current conditions, we lack of expert factoring law. To develop international factoring, our country should establish special laws and rules, and build a genuine market.