Research On Risk Management Of International Trade Financing Of Commercial Banks

Banks since its establishment was born with its risk, so risk management is the important foundation for the Banks to survive. In recent years, international trade financing business, because of its flexibility, timeliness and self-liquidating and off-balance-sheet by commercial Banks have achieved vigorous development and promotion. So business scale have got unprecedented development,leaving banks facing more diversified risks.In terms of the risk types, they change from the early single risk to evolution of credit risk, market risk and operational risk of multiple risk;In terms of the scope of risks, it varies from the initial one link risk to the risk of the transaction process.The ability of the bank’s risk management determines its own credit standing and profitability, also determines the bank role in social economy.Especially in the banking sector,with more and more fierce competition, increased financing scale, currency, extended, bank business process, such as the lack of perfect risk management system, risk management value degree is not enough and loopholes exist in the process of risk management, risk prevention, which will cause adverse social impact for banks.In the commercial bank under the requirement of safety, liquidity and profitability, for bank A, to strengthen the management of international trade financing business risk, and improve their capability of controlling risk has become an urgent need to solve the problem.This article will discuss the international trade financing business risk into the bank’s comprehensive risk management system.First of all, based on risk management and international trade finance management related viewpoints and theory research results are reviewed, and the evolution of the bank’s risk management theory is introduced, and the trade financing bank run mainly has been simply classified and put forward three main types of risks in international trade financing business, that is, credit risk, market risk and operational risk.Second this article will analyze bank A’s trade financing business development and management status, including the background and tendency of the development of international trade financing business, business management institutions and management mode, from four aspects of risk, identification, measurement, assessment and control,it outlined Bank A line current of the three kinds of risk management policy,and puts forward the necessity of A bank trade finance business management.Focusing on the risk point in the process of dispersed in the business, the article points out the problems existing in A bank:one is the lack of perfect risk management system, the second is the lack of A comprehensive risk management concept, the third is the lack of perfect risk management regulations, four is the lack of risk identification control ability, five is the lack of risk of quantitative management, six is the lack of overall risk management culture.Then by contrasting the real business of A bank and the management situation, the article puts forward a new way of A bank’s international trade financing risk management:risk management content from single to comprehensive risk management; risk management techniques from qualitative analysis to quantitative and qualitative change;And this article gives suggestions on how to strengthen the international trade financing business risk management countermeasure and it also fully focus on how to improve risk management framework and to quantify risk management.