Study On The Improvement Of Risk Management Of Trade Financing Business In Bank Of China Gansu Branch

Trade financing is the financing process for enterprises to obtain funds from Banks.It is a series of credit products that Banks give enterprises a certain financing amount based on trade settlement and provide them with funds needed by upstream and downstream business.It is a win-win situation for Banks and enterprises.In recent years,domestic commercial Banks have carried out relevant financing business innovation for different trade modes between domestic and foreign enterprises,and more and more enterprises have started to shift from traditional credit products to financing products based on trade background,so Banks have developed rapidly in this field.However,But at the same time of rapid development,the Bank’s financing loan also has certain risks,the credit risk between enterprises is easily transferred to the bank directly or indirectly.Therefore,commercial Banks should pay more attention to the overall risk management and control of the trade financing business while expanding it.The research object of this paper is the Bank of China Gansu Branch.The author has collected and read a large number of books and literature related to trade financing business and risk management.Combined with relevant theories,the author firstly concludes the characteristics of trade financing business and analyzes its similarities and differences of risk management with traditional credit products,namely working capital loan.Secondly,the author describes the risk characteristics,sources and types of trade financing business of commercial Bank minutely,and analyzes the factors affecting the risk management of trade financing business.Thirdly,the author summarizes the current situation of trade financing business and its risk management of Bank of China Gansu Branch,finds out the existing problems in risk management.Finally,based on the above overview and analysis,the author summarizes the riskmanagement principles of trade financing business in Bank of China Gansu Branch,puts forward risk assessment model,and proposes improvement measures of trade financing business risk management measures to Bank of China Gansu Branch specifically from aspects such as product design,management system,risk control culture,risk transfer,risk control and early warning based on big data and so on.This article takes the Bank of China Gansu Branch as an example to analyze the characteristics of its trade financing business and risk management,so as to find out the management mode of trade financing business suitable for domestic commercial banks: not only can obtain more financing income,at the same time reduce or prevent possible risks,thereby achieving the maximum benefit.