Study On Ship Refund Guarantee Risk Management Of C Bank

Ship refund guarantee is an indispensable tool of commercial banks which provide the shipbuilding enterprises with bank credit guarantee for the export of ships. With the penetration of the global financial crisis from2008, the world shipping market in recent years has been in the doldrums, it not only has brought dilemma of development to China’s shipbuilding industry, but also has caused multiple business risks in commercial banks which has been engaged in shipbuilding industry financing and refund guarantees. The project structure and trading background of the ship refund guarantees are generally complicated, while the financial institutions which carry out such business are commonly the commercial Banks in coastal developed provinces. Therefore, for C bank, which is located in the inland province, will face greater risks when undertaking these business. How to prevent risks and enhance the level of risk management in such business is extremely important.Based on the theory of comprehensive risk management under the framework of the Basel agreement, this paper takes project appraisal and risk assessment as methods, starting from the management framework, business process and the situation of development of the ship refund guarantee business in C bank, chooses part of the guarantee business as actual cases, explores and analyzes the various risks in the process of receiving, handling, and the follow-up management of such business. This paper also reveals C bank’s specific problems in the process of risk management in such business, then proposes a systematic and streamlining solutions design for enhancing the level of risk management and improving the deficiency. Lastly, for perfecting the solutions design, this paper also provides some relevant supporting measures out of the system.The ship refund guarantee business has been taking more than90%places of the C bank’s foreign guarantee business. Based on the safety requirements for the risk assets, the author hopes to provide references for improvement and optimization of C bank risk management through the redesign of such business risk management solutions.