Research On Risk Problem Of Letter Of Credit In Foreign Trade In Hebei Province

With the constant expansion of international trade, uncertainty in international trade increased rapidly. thereby increasing the risk of international trade. Thus, letters of credit ,as an efficient and safe method of settlement in international trade, is commonly used by the participants in international trade.But it can not be ignored that there are also many risks in letters of credit which .is internationally recognized as a safe method of settlement. Therefore, credit risk and its prevention measures to the parties involved in research on the credit has important practical significance.IFirst, the background and purpose of this paper were introduced, and it summarizes the research of legal characters and principles of letters of credit, the UCP, letters of credit fraud exception; then the characteristics, functions, classification of the l/c are introduced, and then to the importers, exporters, all kinds of banks within the usual risk analysis carried out one by one, so that readers have a comprehensive understanding of the risks in the letter of credit in international trade faced by the parties.The third and the fourth chapters are the focus of this paper. The author reviews the historical development of foreign trade in Hebei Province based on data from a large number of official statistics and summarizes features of foreign trade development in Hebei Province in the "Eleventh Five-Year" period; then a commercial bank 2006-2010 International business data were consolidated to find out the utilization of letter of credit in Hebei Province in commercial banks'view; The author also summarizes the utilization of the l/c through statistical analysis of survey results. Then the author sorted out the characteristic of the utilization of the l/c and risks faced by the participants in l/c in Hebei Province. At last, the author provides the measures of risk prevention for the participants in l/c in Hebei Province.First Innovation of this paper is that the topic has a strong point of practical significance. Second, the research methodology in this paper is based on a large number of official data, the commercial banks within the statistical data and questionnaire survey data. Through the use of qualitative and quantitative, statistical analysis and case study method of combining research in the Hebei Foreign Trade, the author points out the risks and measures of risk prevention which promote sound and rapid development of foreign trade in Hebei Province.