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Financing innovation on the international trade of China's commercial banks

Author: HeXianMin From: www.yourpaper.net Posted: 2010-07-12 11:26:12 Read:
Abstract: international trade in international settlement funding problems of international trade finance business, the poor performance of China's commercial banks. The development of new trends and new features in the face of international trade finance, China's commercial banks have to learn to solve the problem, learn from international experience in the same industry, international trade financing innovation in development.
Paper Keywords: commercial banks; international trade; financing
International trade finance in the international trade process to solve the funding problems in the international settlement services trade, it originated in the settlement of international trade and development process. In the large-scale entry of foreign banks in the background of China's financial markets, many of our commercial banks to try and explore the process of international trade finance business has made a lot of achievements, but overall, the business development is slow. China's total foreign trade volume will reach $ 2.6 trillion in 2008, while the Chinese commercial banks, the balance of trade finance accounted for less than 20%. Some foreign commercial banks of the business accounted for 40% of revenues to 80%. Vigorously international trade finance business, the development of China's commercial banks have a very large role for the mitigation of the impact of facing the world financial crisis, not only can promote the development of foreign trade, but also can promote the rapid and healthy development of China's banking system.
International Commercial Bank International trade finance innovative features
Looking at the Western developed countries, commercial banks in the development of international trade financing can be found, on the basis of traditional trade finance, in order to meet the financing needs of the development of international trade and foreign trade enterprises in international trade finance constant innovation and showed the following characteristics.
(A) financing is more flexible rich
International trade finance innovation draws on some of the characteristics of long-term capital market, we can Forfaiting example, to analyze the characteristics of its capital markets. Forfaiting business development process, to adapt to the changing needs of international trade practices and content is constantly enriched and updated, the show even more closely follow the market, its vigorous vitality. First, there has been long-term notes bought exporters as debt obligations as if the capital market secondary market package to buy, that is the sum of short-term investments. Due to various reasons, including buy may not be willing to own a lot of money bound in this investment, you need to look for opportunities to buy for resale to other packages to some long-term notes. This package to buy between transactions forming a package to buy the notes in the secondary market. In the secondary market, the primary package to buy can be sold to secondary package to buy a full set of long-term notes of the particular commodity trading can also choose to sell one or a few of each issue bills are a independent, complete debt obligations. London package to buy notes the most active secondary market, which is where the business of commercial banks at home and abroad to promote the rapid growth of international trade finance innovation gap analysis development of the market. Primary package to buy in the sale of the Notes in the secondary market, sometimes it is not actual delivery of the notes, but only to the secondary market package to buy the necessary information about the transaction, such as product name, quantity, amount and types of bills to Sunday, drawer and Name of Guarantor, its main purpose is the request of exporters for its conservative business secrets. Second, the organizational form of syndicated applied to the forfaiting business. Package purchase agreement involves transactions is often huge amount of money, and involves a bank guarantee of the importing country, including buy-out of the financial viability and credit limit restrictions or considerations for risk diversification, often in combination with several other package to buy together to form syndicate, joint trade financing package to buy notes for a pen large transactions. This kind of financing is similar to a syndicated commercial loans, syndicated loans. In practice, this package buy syndicates composition is quite simple, several other package to buy a package to buy Contact jointly agree on a package purchase agreement can be. Finally, the risk involved in a number of banks. The risk involved in the guarantees provided by the bank is independent of the outside into El supplier bank guarantee complete legal documents, deferred or unpaid bear the irrevocable and unconditional responsibility for payment of fare caused by any credit risk and country risk, The risk involved in real terms equivalent to the purchase of export credit insurance, the primary package to buy suppliers enjoy double protection.
Seen resale on the secondary market, and is similar to the syndicated loan syndication with all the characteristics of the capital market, the interest rate variable also broke the traditional forfeiting fixed interest rate, the risk involved in a number of banks similar to reinsurance.

(B) drawing on the experience of the securities market management
1. The bank active management held international trade finance. The investors generally decide whether to continue to hold or sell the securities, or rapidly changing holdings in accordance with the risk factors and the market price on a regular basis. Banks in the past generally loans (international trade financing) held-to-maturity, time-consuming management customer fulfillment capabilities and loan restructuring. At present, the management of the bank loan portfolio risk increasing attention has begun to use such as the capital asset pricing model to assess risk through geographical diversification to reduce the overall risk of the loan portfolio. Banks to optimize the loan portfolio, including the sale of the loans it originates or securitization of loans to purchase other loans or securitized assets. Some foreign commercial banks to facilitate the active management of the loan portfolio, international trade finance innovation gap analysis big banks such as Goldman Sachs, Merrill Lynch, specifically the establishment of the Ministry of loan transactions. They do Makers for certain loans (international trade finance), sales documents and sales activities of standardization, as well as loans (international trade finance) independent public rating in order to enhance market liquidity loans (international trade finance). Although so far the liquidity of the loans (international trade financing) is still lower than the securities, but has gained greater improvement in the next few years is expected to rapidly develop.
2. According to the market benchmark to measure the performance of international trade finance. The price of securities can generally be measured by market basis, the price of the Treasury, previous loans (international trade finance) income can only be based on the cost of capital plus a difference to calculate. On the Hong Kong market Citibank and Goldman Sachs launched a liquidity leveraged loan index as a benchmark price index, this provides an objective measure of the performance of the loans (international trade financing).
(C) closely integrated with the international trade settlement means
1. To exclude the concerns of both import and export as a means to facilitate trade transactions for the purpose of the principle. International factoring business in the 1970s is a typical example. The generation of this kind of financing is based on the premise of promoting trade turnover to help import and export both sides to avoid the various risks that may be encountered in the process of international trade settlement, while giving exporters finance support. International Settlements, the main risks facing exporters importers credit risk, fear of non-payment after the receipt of the goods, resulting exporter of goods, two empty. This fear so that it can not easily favorable conditions to attract importers to reach a trade contract acceptance to pay a single or credit. The emergence of international factoring, excluded exporters to worry about. The international factoring bear 100% buyer credit on international guarantees, as long as the exporter in the shipping contract approved credit sales of goods, you can avoid the maturity to justify the purchase price of the commercial credit risk, reduce bad debt losses. The same time the importer, as importers have been favorable payment conditions settle our credit so that it is exempt from issuing deposit, bank fees and processing issuing change the card procedures, to avoid the funds used , reduce operating costs, thereby reducing the cost of imports, has been financing the receipt of the goods even after the sale of the goods a certain period of re-payment, and do not have to use its own funds within a certain period. More importantly, international factoring can ensure that importers have received the goods with the contract stipulations from exporters fraud. For this reason, international factoring in Western countries is generally accepted.
2. The status quo of the clever use of the tools of international trade settlement mechanism as a means for the purpose of profit-making and financing of commercial banks in China international trade finance business innovation and strategy choice. The most typical example is the use of transferable letter of credit, back-to-back letters of credit and false long-term letters of credit financing and profitability. (1) transferable letter of credit. Transferable letter of credit intermediaries (beneficiary of the credit) in the rights and obligations under the credit, in whole or in part transferred to the ultimate supplier or manufacturer (beneficiaries) in order to obtain The letter of credit required goods and make the difference. The line of credit or funds can be obtained from the other party, which virtually from the original permit a facility. (2) back-to-back letters of credit. Back-to-back letter of credit involves two separate letters of credit in the same shipment. (3) at the bank. If the exporter is not willing to accept a long-term payment, or the sight payment more favorable to the buyer, importers in order to facilitate the financing bank to open so-called false long-term letters of credit, letters of credit clearly defined long-term bills of exchange, payment at sight (negotiation), acceptance fees and discount interest borne by the applicant. The seller ships the goods, the issue of long-term bills of exchange to recover the full purchase price, in accordance with the terms of the letter of credit to the designated bank spot. This exporters spot to recover the purchase price after delivery; importers not only received the goods the same time, its banks on its behalf to advance the purchase price, so that the importer has been financing. In addition, with the increasing proportion of mortgage financing, credit financing ratio declining diversification of international trade finance collateral receivables as collateral, trade finance, trust receipts, guarantees delivery and other forms of financing .
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