Innovated Solution For Payment Of PN Bank Based On The Exchange Rate Risk Management

Payment is the basic sector of foreign exchange business in commercial bank. Foreign trade become more and more popular in domestic companies accompany with the strengthening of the opening strategy. At the same time, with the improvement of exchange rate(ER) system and the internationalization of RMB, foreign trade suffers specific risk of ER. Under this market context, it is critical for the CBs to expand their payment solutions so as to attract more customers and increase customer viscosity.This paper adopts normative research and empirical analyses. The route of this paper is to find out the problem, then analysis and solve the problem, and finally review the effect by case study. The logical structure is firstly elaborating the basic theory, then the status quo, and finally the countermeasures.This paper takes PN bank as a research object. It provides innovated solution for the payment solution based on the exchange rate risk management(ERRM). It describes the theory of ER, ER risk, ERRM theory. Then it analyzes the present situation of ERRM of PN bank. Through the discussion method and questionnaire survey, it finds the main problem in current payment solution of PN bank. The problem is that the traditional payment products cannot bring more benefits to customers while controlling the ER risk safely, customer viscosity is low, and there is no financing function included. To solve the ERRM problem of PN bank, this paper provides a specific solution named deposit-loan-transfer integration based on the principle of risk income, combing with the financial derivatives. And then it illustrates the effect of these measures by case study. This paper holds that deposit-loan-transfer integration is practical,and it is a good combination of many financial products with the function of payment and financing. It also brings more profit to customers. When designing the foreign currency financial products, banks should take the needs of customers, the internal environment and the foreign exchange market environment into full consideration. And bring a win-win situation to both banks and customers, leading to a more friendly relationship between banks and customers. To sum up, the commercial bank can attract more customers and enhance the customers’ viscosity by innovating and enriching their payment solutions.