International Trading Risks Analysis Of Commercial Banks In China

Along with the rapid economic development of China,the development of its import and export trade has been thriving. Most commercial banks in our country,however,are not paying enough attention to the risks of trade financing product. Some of them have merely placed their emphasis on product development,and barely pay attention to risk analysis and research. As a result,a lot of international trade financing products entail high risks.This paper combines theoretical thinking and the author’s years of professional practical experiences,and analyses the causes of trade financing risks,including both internal causes and external ones. For different types of trade financing products,the author has cited typical cases and given clear analysis of the risks of those trade financing products,and also put forward her own views on how to solve these problems. The specific contents are as follows: first, this paper introduces the background and significance of the research,and then gives reviews and brief evaluation on the domestic and foreign researches, their trains of thoughts and methods. Secondly, the author analyses the causes of trade financing risks, which consist of two parts------external causes and internal causes. Thirdly, the author analyzes the risk of specific trade financing products,and discusses the risks of this type of deals citing specific cases,and then puts forward her solutions. Analysis on both traditional trade financing business and emerging financing business can be found in this part,thus it covers all the international trade financing businesses of commercial banks. Lastly,the author gives her viewpoints on improving the risk management of international trade financing business in China’s commercial banks. The last part summarizes the whole paper and pointed out the shortcomings of the research,and discusses the prospect of international trade financing business of commercial banks in the future.Through the detailed analysis of the four parts,this paper finally draws a conclusion: under the new economic situation,lots of new and developed international trade financing products are being designed by the commercial banks. The commercial banks have been pursuing the market share of their products,and meanwhile they should try to avoid great possible risks. To avoid operational risks to protect the safety of bank assets should always be put in the first priority for any commercial bank. But the actual situation is not optimistic.Due to the limitations of their own internal control and the deviation of their business philosophy,there are bad debts in all the commercial banks’ international trade financing deals. All commercial banks must identify the crux of the problem according to its own situation with the guidance of relevant policies, and seek effective countermeasures to lay a solid foundation for the further development of their international business.