Research On Risk Control Of Cross-border RMB Business Of Shanghai Pudong Development Bank

The executive meeting of the State Council on April8,2009officially decided,cross-border trade in RMB clearing pilot in Shanghai,Guangzhou, Shenzhen, Zhuhaiand Dongguan City, which marks the RMB internationalization strode crucial one step,is conducive to gradually raise the international status of RMB. The pilot RMBsettlement of cross-border trade business officially started, China bank, industrial andCommercial Bank of China, Shanghai Pudong Development Bank and other largecommercial banks have set up cross-border RMB settlement business, and regard thecross-border RMB settlement business for banks as strategic business which providesa new point of growth for the banking industry. However, with the rapid developmentof business, under the background of the international financial situation, the nationalfinancial policy and currency exchange rates, and other changing circumstances, thereexist many risks and hidden bank cross-border RMB settlement business. Therefore,in the rapid growth of cross-border RMB settlement business at the same time, takingactive measures to strengthen cross-border RMB settlement business risk control isvery important.This dissertation analysis in-depth of the situation of cross-border RMB businessin Shanghai Pudong Development Bank by using the finance, the theoreticalknowledge of management science and economics, and identification of risk factorsof Shanghai Pudong Development Bank cross-border RMB business by methods ofcombining with qualitative and quantitative,and this paper constructs the risk index ofShanghai Pudong Development Bank cross-border RMB business evaluation systemon the basis of the risk assessment of special methods and tools.Through theconfirmation of index and to give the index weight and other related,this papercalculates the risk value of cross-border RMB business in Shanghai PudongDevelopment Bank, and put forward the cross-border RMB business of ShanghaiPudong Development Bank the risk control measures.Based on the risk identification and risk evaluation of cross-border RMBbusiness in Shanghai Pudong Development Bank, combined with the actual situationof China’s banking industry, put forward strategies and measures of the ShanghaiPudong Development Bank cross-border RMB business risk control. Firstly, perfect the related system construction to cross-border RMB business in Shanghai PudongDevelopment Bank, including perfecting construction qualification system access;improving the construction of management system of enterprise account; improvingthe assessment system of real business trade. Secondly, strengthen the construction ofrelevant organizations to cross-border RMB business in Shanghai PudongDevelopment Bank, mainly including the establishing the internal risk assessmentmechanism of Shanghai Pudong Development Bank; strengthen establishing theassessment staff awareness of risk prevention and risk control mechanism; strengthenthe construction of Shanghai Pudong Development bank. Finally, strengthen thesecurity system to cross-border RMB business in Shanghai Pudong DevelopmentBank, including the establishing risk evaluation index system, strengthening earlywarning analysis; strengthening the qualification of foreign banks, effectivelyreducing the cooperation risk; signing the relevant agreement to effectively preventlegal risk; strengthening coordination to improve the level of supervision.