Research On International Trade Finance Business Of SPD Bank

International trade financing refers to comprehensive financing service thatcommercial banks offer to international trade in commodities and service based on thedebtor-creditor relationship between both sides. It links the financial market and the realeconomy and functions in supporting trade and economic development. International tradefinancing shows the characteristics of fast liquidity, strong time-effectiveness and low risk,thereby, becoming the new growing point in business of commercial banks.With the reform of RMB exchange rate regime, the exchange rate of RMB againstother convertible currencies fluctuates frequently and substantially, which has fundamentalinfluences to international trade financing of domestic commercial banks. Domesticcommercial banks, when doing international trade financing, ought to put the prevention ofexchange rate risks and the maintenance and increase of value at the agenda.This paper, based on the theories of trade financing and exchange rate fluctuations,concludes features of international trade financing and explains its realistic value tocompanies and banks. Through empirical analysis method, this paper examines long-termeffects RMB exchange rate fluctuations have on international trade financing. SPDB is arepresentative of domestic joint-equity commercial banks. This paper introduces successfulexperiences of SPDB in product development and unique services and also points out thebottlenecks SPDB encounters in international trade financing. Furthermore, this papermakes suggestions in product development, personnel training, financing creditimprovement, etc. The author hopes to provide ways for commercial banks in promotinginternational trade financing.