Short-term Trade Finance, Risk Control To Explore

At present, China has full accession to the World Trade Organization (WTO), but the current domestic economy is relatively backward. Enterprise is relatively weak in competitive strength, how to face the accession to the World Trade Organization challenge, how to guard against risks, and how to safeguard the legitimate benefits, have become an urgent need to study. The past five years, more and more the Chinese enterprises engaged in foreign trade especially in the area of traditional international trading business which ever monopolized by the state after the break. More and more enterprises of different types can engage in foreign trade directly, so they trade with the banks financing regardless of quantity or varieties with increasing forms, For the banks, international trade financing is the effective use of funds because the international trade financing risks are relatively small with quick returns, with bank assets profitability, and safety and liquidity of principle; Secondly, high yield gains huge profits. Based on international trade, international trade financing is the extension of international settlement. Because of its business is a pre-intermediate business, the latter part is assets business, therefore, banks can obtain two kinds of income, that is, fees and margin. On the other hand, from the point of view of banks, by increasing the types of trade financing business, a series of new problems have been met with. How to effectively prevent financial risks; avoid bank credit losses on funds appear to be particularly important. In addition to all financing risk such as credit risk, market risk, there is the risk of documents, transport and the risk of fraud and political risks. International trade finance operations are related to the international financial instruments, documents of title, cargo mortgage, pledge, security, trust, etc. the various rights and responsibilities of a specific legal definition are required. The ways to establish risk prevention system and take effective measures to control risks are preconditions of international trade financing business.This paper firstly outlines the short-term trade financing risk control and then categorize them by specific typical cases, such as import trade financing business (L/C issuing, import financing, delivery guarantee), export trade financing business (packing loans, negotiation under documentary credit, collection bill purchased, export discount, short-term finance under export credit insurance). Based on the above two analysises, I revealed the three main risks: international settlement operational risks, legal risks and customer credit risk, exploring solutions for different kinds of trade financing business risk control.In short, since I have long-term engaged in international business experience, MBA application stage study of bank management, knowledge management, etc, from the legal, financial, management aspects of the import and export trade financing banks of theory with practical systematic attempt to explore, the purpose is to explore the way suited to China's national conditions in the import and export trade financing credit authorization, the internal management, operational and.