The Research Of Risk Management On Letter Of Credit In China Construction Bank Hunan Branch

With the globalization and the deepening of marketization of interest rate, the profit model of the China Construction Bank Hunan Branch is in a transformative stage. Letter of Credit business plays a significant role in acquisition the leading position of the Construction Bank, which is one of the most important areas of risk prevention and the core business for commercial banks.as staff of the bank, effective preventive measures should be taken timely in order to avoid potential economic loss and systemic risks, risks coexist with benefits, the final goal of the letter of credit development is achieving organic balance of them.This article begins with the introduction section that introduces the background, the goal, the significance, the research methods and the related theories at domestic and abroad. The concept and the basic characteristics of the Letter of Credit Letter of Creditare described in second part. The third part, the paper analyzes the development status, motivation and risk-management practices of China Construction Bank Corp. Hunan Branch's Letter of Credit business, reveals the risks on the basis of risk case analysis of other financial institutions in the industry. According to the existing problems to design the credit business risk management improvement program. Finally, this part puts forward the corresponding credit risk control measures and strategies to promote the implementation of the improved scheme from different aspects, and it summarizes the full text in the end.According to the actual situation of China Construction Bank Corp. Hunan Branch Letter of Credit business, and combined with domestic and foreign related research, this paper studies the risk and risk management of China Construction Bank Corp. Hunan Branch in the process of handling the Letter of Credit business, which has a good reference value for the Letter of Credit business of industry financial institutions and the risk management of trade financing business.