The Study Of Risk Management Of Commercial Banks In Foreign Loans For Internal Guarantees

In 2010 the Foreign Exchange Management Bureau issued a "Circular on issues concerning the management of the external guarantee of domestic institutions(No.[2010]39)"(hereinafter referred to as document No.39),then the foreign loans for internal guarantees ushered in the new development of the "first spring".In 2014,Foreign Exchange Management Bureau issued "Notice of cross-border guarantee foreign exchange regulations"(No.[2014]29)(hereinafter referred to as document No.29),which the promotion of development in the the foreign loans for internal guarantees.At the beginning of 2017,the foreign exchange bureau revealed the news that the funds will be relaxed within the foreign loans for internal guarantees in return,so the scale and quantity of the warranty loan business has been greatly increased because of country's foreign exchange policy gradually relaxing.Factors like the advance of the national currency,RMB appreciation expectation,the development of cross-border RMB settlement,foreign exchange reserves increase and so on,promote the development of the foreign loans for internal guarantees.For banks,to some extent the foreign loans for internal guarantees can be said to be low risk business.It not only can increase the intermediate business income and the amount of international settlement,but also can get a fixed deposit,which is of great significance to the bank to open up overseas markets.For enterprises,foreign loans for internal guarantees can break difficult capital overturn situation of the domestic enterprise environment subsidiaries or affiliated enterprise,help overseas enterprises to lower the cost of overseas funds,and can shorten the time of financing,encourage enterprises to open up overseas markets to international.But with the further development of the foreign loans for internal guarantees,its pattern is continuous innovation,and it has become more complicated,which involved more extensive,its risk is more complicated.But within the risk of bank' foreign loans for internal guarantees is not only related to the safety of their assets and their own reputation,is the relationship between China's financial supervision and national security and economic stability,so in the new economic situation at home and abroad,improving the loan business risk ability of commercial banks not only directly can improve the bank's management efficiency and reduce the risk of foreign loans for internal of commercial banks in the frequency,but also provide a powerful guarantee for the stable development and the foreign exchange policy and the stable development of the financial system.So commercial banks must attach importance to risk of foreign loans for internal guarantees and manage business risk with active attitude.In this paper,within the risk management of foreign loans for internal guarantees as a starting point,based on the summary and analysis of the results of previous studies,it analysis of the current development within the foreign loans for internal guarantees and the bank' risk when it carry out this business.The risks is the credit risk,the operation risk,the market risk.This paper analysis of these risks and think it is due to the lack of the communication mechanism,risk awareness,risk control system,personnel and law in the commercial bank.With the introduction of Nanyang Commercial Bank Hefei branch to further analyze problems of the foreign loans for internal guarantees in risk management.Finally,this paper put forward to deepen communication mechanism,strengthen risk awareness,improve the wind control system,cultivating professional talents,pay attention to the policy suggestions.