The Issuing Of International Trade Finance, Credit Risk Analysis And Prevention

Risk management is the core of modern commercial bank. How to effect the risk management is always the goal that the bank aims at. Trade finance is not difficult for the common enterprises to loan from the bank, it has been the tool for the bank to seize markets and the customers. At the same time, how to precaution the risk and how to manage the banking should be thought of and researched thoroughly. This paper introduces risk management of trade finance from some basic theory. At first it introduces the status of foreign trade in our country, some basic theory about international trade finance, the concept, the characteristics and the category. The common problems while the bank dealing with are also introduced in the following. On the basis of risk management theory, the paper takes the letter of credit as an example, which is the common settlement tool in international trade. Through explaining in detail all kinds of risks in the trade finance, the paper brings forward the control method from finance, law and foreign exchange administration. So we can know more about risk management in the bank: The bank is a field with more risks, If the managers don't realize the importance of risk management, it can bring the huge damage for modern commercial bank. From the strategy point, the bank should precaution the fraud effectively. At the same time, it is an important section in the bank in strengthening the inner management and risk control. The paper not only has basic theory, but also has practical operating methods. It is hoped that this study can provide valuable references for the modern commercial bank to control the risk.