Research On The Risks And Countermeasures Of Trade Financing Products Under Letter Of Credit

At present,the credit is in a very vigorous posture on the stage of international settlement,according to authoritative estimates,more than forty percent of the global international trade,the use of this safe and convenient settlement products.Since nineteenth Century,the modern version of the documentary credit after more than 300 years of development,under the credit trade financing innovation in development continuously,mainly including: import payment,packing loan,forfaiting,export discount,delivery guarantees and other forms.Due to the independence of the letter of credit itself,once it is out of the issuing bank to master,and the basic contract,levy application of credit issued background is irrelevant,it is precisely because of this property,the credit financing function has been greatly reflected in trade settlement.For banks,credit financing,trade credit under income is an important component part of the intermediate business income,but because of its own characteristics,to bring huge profits to the bank with great risk,so that the level of bank risk management put forward high requirements.With the development and iteration of the trade financing products under the letter of credit,there is a higher demand for the risk management of the related business.With the advent of the financial crisis,the international trade financing environment has deteriorated sharply,the default occurs,the risk of trade finance increases.At present,the international financial situation and the domestic economic slowdown,in this environment,comparative analysis of the risks of different credit financing,the banks to reduce bad debts,enterprises save cost and ensure it is of great practical significance to the healthy and orderly development of China's trade settlement.This paper mainly adopts the method of comparative analysis and case analysis to study the risk of trade finance under the credit.First of all,a detailed analysis and comparison of the trade financing under the letter of credit.Secondly,expounds the risks of credit in trade financing,and will study respectively from a total of two aspects of risk and specific risk,also cited the cases the results be proof,finally put forward the risk coping strategies...