Analysis On The Development Strategy Of Forfeiting Business Of P Bank Sichuan Branch

As an emerging financing mode for product export,forfeiting is widely accepted by the exporters for its benefits such as no credit extension required by the exporting party and does not grant the forfaiter the rights of proceeding..Being a low-risk,low-occupancy trade financing product,forfeiting is favored by commercial banks against today's background that RAROC is rigorously assessed by commercial banks.In early 90 s,forfeiting was first introduced to China,however,the development of forfeiting mode is still in its infancy.The shortcomings of law & regulations,lack of specialized personnel,poor risk control ability,low market recognition had been hindering the banks from operating advanced forfeiting businesses that satisfy the various demand of the clients.Founded in year 2008,Sichuan Provincial Branch of P Bank is a new commercial bank undergoing the key phases of commercial bank reform.Facing the fierce horizontal competition,under the pressure of revenue growth assessment,it is crucially significant for the branch to take full advantages of forfeiting to increase the income from intermediate business,change the current deposit/loan interest spreads,and expand the market scale.Refer to the abovementioned issues,this paper will analyse the business lines of forfeiting and compare forfeiting mode with other export financing modes.Combined with the status quo of P Bank Sichuan Provincial Branch,the author will design a development plan for the branch?Firstly,this paper studies the advantages of forfeiting service by illustrating its business principles and core competence,taking the key features of forfeiting such as high RAROC and without recourse as breakthrough point,compare forfeiting with other vendor financing modes such as Factoring,Outward Documentary Bill for Collection,Bank's Acceptance Bill discount etc.Secondly,the author further discusses the business structure of P Bank Sichuan Branch,and analyses the business principles and risks of proprietary trading forfeiting,agent forfeiting,forfeiting secondary market respectively,conducts an research on the rates and revenue of P Bank Sichuan Branch.Thirdly,by analyzing the international settlement,application of forfeiting business,current development of affiliates,assessment orientation,agents ' prospect,staffing &efficiency and other related aspects,the author takes a further step to examine the status quo and existing issues of P bank Sichuan Branch's forfeiting business operation.Lastly,regarding the current situation and issues,through in-depth study of other financial organizations ' creative forfeiting service products and business modes,the author proposes a new business development plan for P Bank Sichuan Branch 's forfeiting service.