Bank Of China Heilongjiang BR. Trade Financing Products "Paying Up To" Business Risk And Expand

Due to the impact of the continued appreciation of the RMB, enterprisesgenerally reduce the foreign exchange deposit amount. The bank cannot byabsorbing deposits of enterprises to expand the sources of foreign exchang e. Thesize of bank credit seriously squeezed, financing costs continue to rise. Atpresent, foreign financial market, one side is the continued appreciation of therenminbi is expected, one side is the foreign exchange liquidity in theincreasingly tense, resulting in import and export enterprises "to retain the RMB",late payment of foreign exchange, cash in the exchange differences demand. Inthis case, how to meet customer demand for funds in international settlement hasbecome a problem. There is no method that satisfy both sides, so that enterprisescan enjoy the benefits of RMB appreciation, and not spend high price to buyforeign exchange.In2011, Chinese banks take advantage of their overseasinstitutions numerous advantages, the launch of a new financing products-"paying up to". The introduction of this business, the domestic branch of theBank of China can take advantage of overseas banks to meet the financing needsof enterprises within the territory of the import, domestic bank foreign exchangeposition tension crack the dilemma.This paper mainly introduces the "paying up to" business background,"paying up to" business advantages, Chinese banks "paying up to" businessoperation process,"paying up to" business problems and solutions, as well as"paying up to" business. Analysis the pay of business application in our bank forthe generation of the trade financing customer case, reflects the advantage ofpaying for business and traditional trade financing compared, have certainguiding role for the promotion of paying for business.The significance of thispaper is, after seeing Chinese bank’s international trade financing business hasachieved great development at the same time, also should see the existence ofproblems in business development. Through study on "paying up to" business, torealize the development of trade financing for enterprises and Chinese bank hasimportant significance.