The Content’s Expansion And The Function’s Innovation Of The Structured Trade Finance

After the financial crisis, the global trade sharply declined. There are two reasons for this situation. The first reason of this situation is the frustration of the western countries’ economic development makes the actual demand decline. Another reason is the difficulty of international trade finance makes the effective demand decline. In western countries, the operation of most banks is with high leverage. The negative effects of this operation become obvious after the financial crisis. Most banks refund the money that was borrowed from various ways. So the fund of foreign banks is in short supply. Meanwhile, the risk consciousnesses of the bank enhance. The requirement of international trade finance become stricter and the line of credit reduce for the international traders. The above situation makes the international trade finance more difficult, so the international traders have to give up the trade projects. Currently, the economic situation in some countries has improved, but the sustainability of this situation is difficult to determine. In this situation, the expansion of trade finance will undoubtedly expand the export, and promote the economic to the right direction continually. In fact, most countries start to expand the international trade finance in order to support the development of international trade and promote the development of the international trade. The proportion of financing provided by The Japan Bank for International Cooperation Increased from60%to100%.The U.S. Export-Import Bank and the Australia’s trade finance and Guarantee Company, mainly provide insurance previously, now they provide financing too. In addition, the demand of international trade finance becomes more diverse, so the traditional model of trade financing can not meet the needs of traders. In this market environment, new trade finance business----structured trade finance has developed rapidly, because this model of trade financing can design trade finance programmer according to the actual situation. Nowadays, every country’ bank launches its own structured trade finance products that resolve the problem of international trade finance to the traders. In addition, for the bank, the business of structured trade finance enlarges business and enhances international competitiveness.After joining WTO, although the international trade increases rapidly in china, the scale of trade finance is very small. Compared with the international average, the level of the bank trade financing is very lag in china. The reason for this situation is the finance products in china are very less and the trade finance ability of the trade finance institutions is limited. In order to improve the situation, our bank start to operate the new trade finance business----structured trade finance. In the development of structured trade finance, its content has expanded and its function has innovated. However, compared to the practice development, the research of structured trade finance is lag, especially in the expansion of its meaning and the innovation of its function.In the beginning of structured trade finance in china, some domestic scholars simply understood that the structured trade finance is a specific means of financing. In the mid-twentieth century, Export-Import Bank of China began to carry out the structured trade finance business. With the expansion of market-based and the acuity of bank competition, domestic commercial banks have started to engage in structured trade finance by imitating the practice of foreign banks. At this time, domestic scholars believed structured trade finance is a combination of variety traditional financing instruments. Then, scholars enhanced the study of structured trade finance from the perspective of the self-compensation and the tailor-made program. Overall, the domestic scholars views are scattered in various literature and have not comprehensively generalized the content expansion and the function innovation of the structured trade finance. This is extremely unfavorable to the development of structured trade finance in practice. Therefore, the theme of this article is the content expansion and the function innovation of structured trade finance. There are five chapters in this article.The first chapter is the preface. In this part, the author firstly elaborates the background and significance of this article and then summaries the literature in four areas of the content, function, feature and risk. On the basis of the summary, the author has a brief review of the literature. Finally, there is a brief description of the logical structure, research methods, the innovation and the deficiency of this paper. The second chapter is the history and the theoretical origin of structured trade finance. The author firstly summarizes the history of the structured trade finance and its development in china. Early, the business of structured trade finance is carried out by the policy bank-----Export-Import Bank of China. Later, with the entry of foreign commercial banks, most of the structured trade finance businesses were carried out by foreign banks. At last, due to the competition and the need of practice, China’s commercial banks have begun to operate structured trade finance business. Then, the author explores the origin of structured trade finance theory from the perspective of the management of trade, financial market, supply chain financing.The third chapter is the content expansion of structured trade finance. According to the development of structure trade finance in China, the author summarizes domestic scholars’ views about the meaning of structured trade finance. These definitions have a positive role in the development of structured trade finance in china, but they are too simple and not complete. Then the author analyzes the content expansion of structured trade finance according to the practice of structured trade finance. Finally, the author attempts to define the content of structured trade finance.The forth chapter is the function innovation of structured trade finance. Based on the general characteristics of structured trade finance, the author analyzes some new characteristics of structured trade finance that are shown in practice. Then the author analyzes the function innovation of structured trade finance in practice according to the function of early structured trade finance.The fifth chapter is the conclusions and implications. Firstly, the author summaries the content expansion and the function innovation of structured trade finance that are researched in this article. Then the author illustrates the significance of the development of structured trade finance. Finally, the author the problems that exist in the development of structured trade finance in china, and the advances that promote the development of structured trade finance.The main contribution of this paper is as follows. Firstly, according to the development of structured trade finance the author analyzes its theoretical origin. Secondly, the author generalizes domestic scholars’ research point of structured trade finance. Thirdly, according to the development of structured trade finance in china, the author researches the content expansion and the function innovation of structured trade finance.