Research On Credit Risk Management Of A Commercial Banks International Trade Financing

With the development of international trade and the growing complexity of financial conditions, the international trade financing services in commercial banks are becoming more multifarious and complicated than before in many ways and the credit risks, especially brought by the new product such as asset securitization, international factoring and forfaiting, are increasing as well.The services in our domestic banks, however, have a late start with decades of development. Therefore the profession and the related credit risk management levels are still low comparing to other commercial banks in developed countries.Hence, it is full of practical significance to have a systematical research the credit risk with the case of A Bank Zhongshan Branch.This research, based on the original and relevant theory about the risk management of international trade financing in the commercial banks, collects the correlative domestic and abroad literatures and uses the normative analysis with cases and the system analysis following the study direction “Normative-Case Analysis”, including the real conditions of the Zhongshan Branch and my rich experience in the bank.The paper, first of all, introduces the actuality of the international trade financing services in the branch, and then analysis the risk of the services in detail. Afterwards the specific performance of the risks and the existing problem is comprehensively summarized in the paper, analyzing the inside and outside reasons to the risks. Some advice to consummate the credit risks management in the branch, at last, is offered from several aspects, such as the third-party supplementary proves after the due diligence, the credit check using technological methods, the attentive analysis of the enterprise’s financial data, the establishment of a refined database template, the management mechanism of the account regulation and the loan collection, the exchange rate management of the import credit financing, the security of the exchange earnings of the export enterprise, the professional training of the staff and application of the financial derivatives. Hopefully, the research will promote the process of the credit risk management study on the international trade financing of our domestic banks.