Risk Analysis Of Ship Trade Finance Business Of Commercial Banks

With the development of economic globalization, international trade financing has become an important business in China’s commercial banks, due to its characteristics of strong Self-Liquidation, low risk and higher rate of return. The development of international trade financing not only has impact on bank earnings, but also influences the development of China’s international trade. Commercial banks in our country do not have a long history of developing international trade financing business, so risk guard consciousness and ability are not strong. In the face of increasingly fierce international competition, it is worthy of special attention that how to grasp opportunity to expand international trade financing for banking industry in our country, in order to maximize financing benefit and intermediate business income, but also effectively prevent and control the financing risk.In addition, with the increasing impact of financial crisis and the debt crisis on world economy, international trade financing environment worsens ceaselessly, which produces adverse effect on banking industry. At the same time, the majority of our commercial banks in the international trade financing business do not establish the risk warning mechanism. In this case, when the risk is approaching, there seems to be no method to solve the problem. Therefore, how to establish a set of measures to avoid and control the trade financing risk effectively to expand business for commercial banks has become one of the most important tasks.Based on the empirical study of risk analysis on advance payment guarantee syndicated in ship financing and combined with the international trade finance business of commercial bank risk characteristics, causes and types, this article proposes the establishment of a comprehensive risk management ERM system to effectively prevent and avoid this kind of risk, and puts forward the corresponding policy suggestions, and strive to control the international trade financing risk to a minimum level, in order to promote development of international trade finance business of commercial bank in our country.