Study On The Risk And Prevention Of Onshore Security For Offshore Credit Of Bank

With the promotion and implementation of the "go global" strategy and "One Belt And One Road" initiative,a growing number of Chinese enterprises go abroad to carry out overseas business and promote the development of foreign economy.In recent years,Chinese commercial Banks into active service for Chinese enterprises "going out",to speed up the building along the area financial services network.Chinese Banks have set up branches abroad,strengthen financial innovation,in addition to the traditional credit support.Through active financial support such as cross-border RMB financing and joint investment and loan,the capability of cross-border comprehensive financial services has been constantly improved.However,in the development of overseas business,enterprises have strong capital demand but are faced with financing difficulties,and their development is restricted.In order to better serve enterprises that "go global",commercial Banks continuously launch new financial products to support their domestic and foreign development.With the encouragement and relaxation of policies of Administration of Foreign Exchange,the Onshore Security for Offshore Credit business starts to emerge and flourish,and plays an active role in promoting the development of cross-border financing business.The Onshore Security for Offshore Credit business is one of the types of cross-border guarantee,in recent years,the business become the most commonly used way of the enterprise outside financing.With the loosening of the foreign administration policy to a certain extent,the risks of this business have gradually emerged.Among the typical cases of violation and violation reported by the SAFE in 2018,commercial Banks' Onshore Security for Offshore Credit business has become the worst-hit area.Therefore,it is very important for commercial Banks to guard against the risks in the operation of Onshore Security for Offshore Credit business.Within this article will qualify for the risk of Onshore Security for Offshore Credit business and its prevention as the breakthrough point,through the real cases of the business between Le Tv Group and China Merchants Bank as the research target.This paper systematically analyzes the risk points,risk causes and preventive measures faced by commercial Banks in carrying out this business,and suggests that commercial Banks must do a good job in the pre-loan examination and post-loan supervision,risk research and preventive measures in order to make the healthy and stable development of the Onshore Security for Offshore Credit business.This paper is mainly divided into five parts for elaboration and analysis:The first part is the introduction,mainly including the research background,research significance,domestic and foreign research trends,literature review,research content,technical route and innovation point;The second part is the overview,risk investigation and theoretical analysis of the Onshore Security for Offshore Credit business,mainly including the definition,operation process,development status and trend,development reasons and existing problems;the risk points,risk characteristics,and risk cause analysis of the business;Principal-agent theory and total risk management theory.The third part is the risk research of the Onshore Security for Offshore Credit business,mainly including The fourth part is the case analysis of China merchants bank and Letv group's Onshore Security for Offshore Credit business,mainly including case background description,case operation process,prevention measure and case summary.The forth part is the risk prevention of Onshore Security for Offshore Credit business,which mainly includes strengthening mechanism construction,standardizing internal operation of commercial Banks and strengthening risk management.The fifth part is the conclusion,which summarizes the whole paper and draws a conclusion.The deficiencies and limitations of this study are summarized and the future research is prospected.