Domestic Commercial Banks To International Trade Finance, Risk Management Study

This article analyzed the risk management of domestic commercial banks in handling international trade financing business in order to intensify reader's understanding to the international trade financing business and its risks, form a pattern of risk management for bank's international trade financing business and discuss on the operational method on renovating bank's trade financing business with the goal of risk control. It also analyzed various trade financing products and their risks by researching on the cause of risks occurred in domestic commercial bank's international trade financing activities, using the operational mode of trade financing in Hong Kong as reference, guided by the new stipulations of Basel Treaties, aiming at the problems existed in the domestic bank's trade financing business, from two aspects of credit risk management and operating risk management, it tried to seek ways to strengthen risk control ability of the domestic banks, combining the ideas of risk management with the bank's trade financing policies to improve the bank's core competitive power in trade financing business.