The Risk Management Of Trade Financing In Jiangxi Branch Of Z Bank

In recent years,with the bloom of international settlement,trade financing is in the period of vigorous development.It is playing an important role between banks and enterprises.The so-called trade financing is a kind of short-term structural financing tools in the trade transaction,that makes the use of structural short-term financing tools,basing on commodities such as crude oil,metals and grains in the inventory,prepayments,accounts receivable and other assets.Because of its lower risk,higher income and faster turnover,trade financing promotes an intermediary business development for commercial banks.More and more attention was taken on it by the commercial banks.At the same time,the products of trade financing emerge in an endless stream and strong functionality,and they meet the financing needs of enterprises well.It was highly favored among companies.However,after the rapid development of trade financing,the risks are gradually exposed with a series of factors with the downturn of world economy and the complex external environment.The risk management of trade financing is also facing the hitherto unknown pressure and challenge.In addition to macroeconomic factors affecting,commercial banks should also to review the effectiveness of risk management measures and methods in internal perspective,in order to avoid the outbreak of a large number of bad assets.In recent years,the Z bank of Jiangxi Province branch(hereinafter referred to as Z bank),acted as one considerable size of the large banks,encountered many problems in the field of trade financing.This thesis focuses on the empirical research of risk management in trade financing of Z bank.Through the analysis risk types and characteristics of trade financing,combined with the development of trade financing business situation of Z bank,the thesis analyzes the business product distribution,development and change of industry characteristics,regional distribution,and the trend of trade financing,asset quality and changes in the past five years.This thesis combined with the analysis of three typical adverse case and summarizes the main problems in trade financing of Z bank in the field of risk management,that is mainly: 1.the lack of risk identification,2.inappropriate credit management mode,3.insufficient executive ability in rules and regulations,4.inappropriate assessment and incentive mechanism;5.the shortage of talent team,6.Slowly construction of IT system.Finally from the internal management perspective,the author provide corresponding countermeasures that is,to cultivate a healthy culture of compliance attitude to the risk of trade financing,to improve the management mode of credit risk management in the whole process of trade financing,to improve the effectiveness execution in rules and regulations,to establish the overall effective and comprehensive evaluation system,to strengthen the construction of professional talent team,to construct a kind of intelligent IT system.The research on risk management of trade financing can be used as a product manager engaged in or about to engage in this field.It also can help employees catch the risk characteristics of trade financing product of commercial banks,and making prevention and control measures.The results of the study can also provide a good guidance on baking internal risk management for the management personnel and the supervision department.According to the study of current risk management situation of Z bank in the field trade financing,the author is trying to put forward a good countermeasures for Z bank's development and management of the risk control.Due to author's limitation and shortage in knowledge,and lack of quantitative analysis and model,a further research is needed to make.