Study Of The Crux Of The Letter Of Credit Disputes

The current international trade, letters of credit is a means of payment and financing tools which is the most widely used and accepted by all traders.it combines commercial credit and bank credit and maintains the normal transactions. Garanteeing the proper rights of all parties concerned and overcomes the barrier caused by insufficient information between the buyers and sellers.However the theoretically "independent abstract" principle defects of letter of credit brings many difficulties in risk prevention and finance supervision. Disputes arise frequently in L/C settlement .understanding the outlaws' ways of fraudulent and how to prevent them is an urgent project for banking industry. It bring the impact of various fields is self-evident.Centralized processing of the International Settlements has become the inevitable trend of development. It enables business processes to achieve more Normative, more standard,and faster.At the same time in dealing with large-scale operations on the basis of lower costs, Improve service quality and service efficiency, maximize the overall profitability of a bank's business objectives.With the fiercer competitions in the market of international settlement,all banks treat the trade financing concered as one of the most important services .at the same time, ,it brings many new features in this area,to make initiative studies and find out how to deal with them is a realistic subject for the banks to adapt themselves to the changes and promote the international settlement practice.