Study On The Risk And Prevention Of Bank Acceptance Bill Business In China

In China’s financial system, commercial banks are important institutions, which play a significant role as the safeguard national financial stability responsibilities. There are many functions of commercial banks, among these functions, an important function of commercial banks is providing indirect loans for the enterprises, giving the saver’s money to enterprises, enterprises paying bank interest, and the interest also became an important income of commercial banks. In the course of the loan, the loan can be long, and it can also be short. An important way of short-term loans is bills, bills business which offer a risk lower and high income for Chinese commercial banks is an important part of banking business and the bank credit business.The commercial bank draft in our country is just a simple trade settlement tool in the nineteen eighties. The money market is not developed in China at that time, financing instruments and financing channels are short; the credit between enterprises is opaque, and commercial credit is not perfect under the construction of the social credit system. So China promoted clearing since the nineteen eighties in order to solve the enterprise long-term debt, to reform of the banking settlement system, and to promote the commercial credit. Bank acceptance bill is a great help in the financing of enterprises and banks from its production and application. Although the promotion of bills, bank acceptance bill and commercial acceptance bill have been extended, but commercial acceptance bill developed slower because its less stable and less reliable, and enterprises generally prefer bank acceptance bill for its higher reliability and higher stability. In recent years, the major financial institutions have also focused on the bank acceptance bill which let the expedience of the acceptance and discount, and the business of bank acceptance bill have a large development. But with the expansion of commercial bank bill’s businesses in its size and depth, its risk in management process is also highlighted. In this case it is necessary to study the risk of bank acceptance bill and puts forward countermeasures suggestions.From related concepts of bank acceptance bill, this article analyzes the status and role of bank acceptance bill, and analyzes the risks of bank acceptance bill. The risks mainly include commercial banks for the drawer, discount qualification risk, the risks provide the goods trade, the operational risk of commercial bank, the applicant credit risk, the commercial bank credit assets quality "distortion", the deposits of the vicious circle risk, the violation risk and bank off-balance-sheet business risk. After the analysis of bank acceptance bills business risk, his paper puts forward some countermeasures to prevent the risks which start from external aspects and internal aspects. Finally, this paper uses several cases to demonstrate the risks and related countermeasures.