Import And Export Trade Finance And Risk Management Research

Ten years lately, while China made progress in import and export trade continually, it made a great increase in the variety and quantity of trade finance, and took a new increasing point for profit. But it also brought a series of problems about keeping the risk of trade finance away banks. It is a new problem that how to develop trade finance safely and effectively in many banks, which developed international businesses recently. This problem should be learned and researched deeply. Due to this right researching aim, this paper made a correlative study of trade finance and its risk of management.The paper construction and main is as follows:Chapter I ,description of trade finance. The writer traced from its history to current development, listed its three main characteristics and three main functions, and introduced the existing problems and prospective trendy of trade finance in details in China.Chapter II, types of trade finance. The writer described trade finance in import aspect and export aspect. Other than these points, this paper emphasized on Forfaiting and Factoring as newest two operations in China and gave a profound explanation.Chapter III, the risk of trade finance and its reasons. This chapter analyzed five kinds of risk, i.e., the risk of country, the risk of exchange rate, the risk of interest rate, the risk of credit, and the risk of operation, faced by Chinese commercial banks. Then it analyzed the reasons that lead to trade finance earnestly.Chapter IV, the risk management of trade finance. This part is one of the most focal points. It dissertated the scale , avoidance andelimination of any risk. Because it is the most important to avoid the risk of credit, the writer emphasized on precaution to the risk of credit in customer aspect and correspondent bank aspect.Chapter V, it designed the center of transacting trade finance. After describing and dissertating the trade finance and its risk management, the writer integrated with self-working practice, designed the center of transacting trade finance, its organizational structure and operational mode.