Research On Risk Management Of Letter Of Credit Financing In G Bank

With the rapid development of the world economy,global integration has gradually become mainstream,and China's interational trade has also been fully developed.In 2017,the world economy recovered moderately,the domestic economy maintained a steady trend,and China's import and export settlement volume reversed previous consecutive The situation has been declining for two years,but the problem of difficult circulation of funds for import and export companies has become increasingly prominent.There are various types of settlement and financing methods in international trade.Import and export companies have to consider a series of risk points such as credit risk,market risk and operational risk.For the import and export companies separated by heavy oceans,especially for the two parties in the initial stage of cooperation,they do not understand each other and it is difficult to grasp the status quo of the other party's business operations and the status of the capital chain as one of the barriers that hinder both parties' transactions.In the 1980s,the letter of credit came into being and was fully utilized and developed in the 20th century.The intervention of the bank resulted in guarantees for both importers and exporters,and the letter of credit brought commercial banks a substantial amount of intermediary business income.Is a letter of credit financing business,but also the main source of commercial bank international settlement business income.However,due to the special nature of the letter of credit financing business,it is bound to bring risks to commercial banks.In recent years,raising the amount of trade financing and expanding intermediate income is one of the important means for G Bank to broaden its international market.To achieve its goal,G banking business operators have continuously lowered the standards for customer access,resulting in frequent risk events,and therefore It is imminent that the bank's letter of credit financing business conducts risk management research.Based on the risk theory of commercial banks and the risk theory of Basel Bank,this paper uses a combination of case studies and normative research to systematically sort out the relevant literature on the financing of letters of credit by domestic and foreign experts and scholars.With G Bank as the entry point,this paper analyzes The processing mode and development status of the G bank's letter of credit financing business studied the business process,common business risks and unique risks,and examined the risk management status of the G bank's letter of credit financing business.From the perspective of research,the two institutions of the front and back office processing through the G-Bank L/C financing business combine the specific operational procedures of the G-bank buyer financing and the seller financing two types of reverse financing methods to find out risk points and present letters of credit.The countermeasures and suggestions for the risk management of the financing business are conducive to direct application to the actual work,so as to improve the risk management of the letter of credit financing business.In terms of research perspective,this paper is highly targeted and practical,which is helpful for G Bank's business process personnel to apply to the actual work,and also has certain reference value for the risk management of other commercial bank's letter of credit financing business.This paper finally concludes that there is a lack of close communication and collaboration between the risk management of the G-banking L/C financing business before and after processing,lack of professional guidance in the face of risk events,and pointed out that G Bank must establish a complete front-backend risk supervision mechanism and strengthen front-end and back-end mutual restraint.Sex,to add "China and Taiwan" to fill the risk loopholes,strengthen personnel training,train professionals,and strengthen the prevention of common risks and unique risks,so as to enhance G Bank's management level and risk prevention level to deal with the risk of letter of credit financing business.The structure of this paper is as follows:The first chapter mainly introduces the reasons,theoretical and practical values,research methods and innovations of this study.Chapter 2 first quotes the views and research of domestic and foreign experts and scholars related to this study.The results,and introduced the theoretical basis of this article;the third chapter briefly introduced the G bank's current handling mode and processing status of the letter of credit financing business,and put forward the problems;the fourth chapter passed the G bank's delivery guarantee,import bills Analysis of the processing flow of the five major financing businesses,packaging loans,export bills,and forfaiting,summarizing the risk points that are prone to occur in the L/C financing business and the specific risk points and causes of each financing business,and a brief analysis of recent years The related risk events occurred;Chapter 5 put forward corresponding risk management countermeasures and preventive measures for the problems and risk points found in the previous two chapters;Chapter ? research conclusions and research prospects,summed up the research results of this paper.