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On trade finance risk analysis and prevention of International Commercial Banks

Author: HuangYunJie XiaoXinHua From: www.yourpaper.net Posted: 2010-07-05 19:53:22 Read:
[Keywords] international trade financing risk prevention
[Abstract] in the economic globalization, banks in the increasingly fierce competition today, international trade financing has been widely applied.However, due to the world financial crisis deepens increasingly, international trade settlement and financing in the proportion of bank financing business in the rising, the financing risk is gradually increasing.Through the analysis of all kinds of risks in international trade financing, puts forward feasible measures to prevent risks.
, the introduction of
International trade financing, refers to the law of capital demand and capital flow bank around the traders, and with all aspects of the international settlement, to meet a variety of services traders sum of money demand.At present, the international trade financing business of commercial banks in the main types include: reducing the margin import letter of credit, import bill advance, delivery against bank guarantee, trust receipt, import collection advance, export packing loan, export trade, export collection financing, international factoring, it Tingye debt financing, the import and export bank.But with the expansion of the world financial crisis further deepen and trade financing, financing risk is gradually revealed.After analyzing risks and the causes of international trade financing business of commercial banks, the international trade financing risk prevention and puts forward some countermeasures and suggestions.
two, international trade financing of commercial banks risk analysis
(a) operational risk
Business development of credit business of commercial banks and other financing, not to its operation, strict management, or failing to take effective preventive measures, there will be many system is not strict, ineffective monitoring, management and insufficient improper manipulation phenomenon, which caused the loss of funds, the formation of operational risk.The operational risk of internal bank mainly as follows: first, the loan review is not strict, the two is the lack of credit monitoring system.Three is the lack of credit of its security mechanism.
(two) financial fraud risk
The premise of the exporter the timely exchange earnings in the shipment of goods must be completed after the bill in time cues or provide to meet the requirements of the documents, while criminals often in international trade settlement process using fake notes, false credit card defrauding bank funds for financial fraud, mainly reflected in the following aspects: (1) the use of false the letter of credit fraud; (2) according to the fraud with false; (3) using the soft terms of the letter of credit fraud.
(three) the internal control management risk
The need for risk management of international trade financing business to establish a perfect management system, monitoring and management of the use of advanced technology in each link of the whole business operation, and to coordinate the cooperation between the bank the relevant departments and branches.At present, China's banks in the processing procedures for foreign exchange business is relatively backward, business between the different departments, branches of different independent operation, the lack of a unified and coordinated management, lack of cyber source sharing, lack of standard operational procedures, not the business statistics more details, and can not achieve the sharing of resources, monitoring risk, restrict each other purposes.Specifically: the first is the customer and market level of understanding is not deep, risk early warning is not timely, risk control ability is poor.The second is a serious imbalance in some commercial bank branches in the import and export business scale, lack of risk compensation guarantee financing business.Some open problems and proceeds security; at the same time, part of the issuing bond charge ratio is too low, even the issuing of the general quality of the customer free margin, some lines of packing loan amount accounted for the rising proportion of the amount of the credit, individual or even as high as 100, and the lack of effective guarantee, with only a paper letter of credit payment, increased financing business risks.Third is the number of branches of commercial banks internal assessment is biased, international settlement business grass-roots banks at the end of the year assessment of pressure, and of international trade finance, asset quality control is not tight.
(four) the import and export enterprise credit risk
China's import and export enterprise overall benefit is poor, common multiple accounts, settlement, loans and financing bills, its credit status is not ideal.However, due to funding needs, often rush into danger, with import and export trade, packing loan, international trade financing means, obtain bank funds or used for other purposes, or export documents submitted to other designated foreign exchange banks for negotiation, the loan funds cardiopulmonary bypass, bank trade financing while nominally retained recourse, but in fact and bank credit department to implement the interest as difficult, with little success.
Countermeasures of three, commercial banks to prevent risks in the international trade financing
Aiming at all kinds of risks in international trade finance, commercial banks must establish and improve the risk prevention system as soon as possible, to take timely measures to reduce the degree of risk reduction or financing, actively provide financial support to the enterprise, continuously improve the recognition ability of financing risk and risk management ability.
(a) the establishment of financing risk management system of science and trade
First, a reasonable set of internal organization of banks is to ensure that trade financing business smoothly, the carrier against various risks.The establishment of financing risk management system of science and trade, clear and important responsibilities, truly mutual constraints between departments, post.
Second, according to the reality of the administration of foreign exchange business of the commercial banks in China, in order to build the trade financing risk management system, proceed from the following several aspects: first, to break the "bank" the management system, to achieve the common development of foreign exchange business, from the horizontal, vertical two levels.Secondly, improve the unified authorization and credit system is the key to establish a scientific management system.At the same time, commercial banks also should be unified on the customer credit.For the establishment of standards in line with the international trade financing business customers, and to establish the levels of credit approval Review Committee, the establishment of credit examination and approval center and trade financing service center, and finally to establish the credit business management pattern of highly centralized.
(two) credit status review of the import and export enterprises
First of all to authenticity examination of import and export trade, should be the basic situation of in-depth investigation of the loan applicant.The authenticity of the letters of credit under the trade, is to prevent the credit risks.Second, we must strictly review the customer's credit, should review: a customer in the credit and business credit record and standard bank.The two is the level and the development prospects of the client's financial situation, management.Three is the review of customer management level, especially the main leaders of the management level, moral quality and professional quality; review the main business staff business ability.
(three) to improve the internal control of commercial bank
First of all, to complete the financing before the pre-loan investigation, set up a system of analyzing the credit risk, strict examination and approval of the financing credit, operational risk control.Secondly, strengthen the loan review and management, establishing risk monitoring system.
(four) to improve the quality of commercial bank financing business management personnel
Improve the personnel management of trade financing quality, enhance the consciousness and ability to prevent risks has become a pressing matter of the moment.First of all to the people, the introduction of high-level talents.Second, job training, must be regularly carried out foreign policy and foreign exchange business management training to their employees, to improve the business operator and the management service quality, ideological quality and policy level, reduce errors and irregularities.Three is to set up new trade finance business, should be based on sound management, management of the principle of priority.Four is to strengthen the risk consciousness, on the high risk of international settlement and financing cautious, continue to improve staff knowledge pseudo, anti-counterfeiting ability.
Conclusion four,
As the degree of internationalization of the economy and the deepening of the financial crisis, forcing us to must face and face the risk, although commercial banks to engage in trade financing risk, but as long as you build up a complete set of trade financing risk prevention system and operating mechanism, and regulate the operation, can control the trade financing risk to the lowest level, comprehensive competitiveness improve the commercial bank.
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