Study Of Structured Trade Finance And Application

Structured trade finance, as an advanced financial product, is the result of the trade finance innovation .Over the past few years, international trade has been expanded rapidly, the trend of the economic globalization has developed quickly, information technology has been developed fast, especially more and more emerging market and developing countries have been involved in the international trade ,so structured trade finance has become increasingly prevailed by more and more banks and the merchants .On one hand ,it will make much profit to the bank .At present ,the amount of international trade has reached 15 trillions, and that amount is also rising at the rate of 3% every year,80% of them need trade finance service. Banks is facing fierce competition in traditional trade finance pattern, the margin of profit becomes more and more little, while structured trade finance is a virgin market with enormous potential .On the other hand ,structured trade finance can reach the target of satisfying the whole trade flow to be financed, and it not only can offer finance service to the companies ,but also can controlling the risk at every trade step for the company . By using the structured trade finance, it can satisfy company's finance needing and mitigating the risk. Structured trade finance is just at its starting stage of development in china and has very limited effects and a small scale here. What is it? How to apply ? What is the problem of its application in china? That is a question that especially merits bank's attention and is also the question this thesis is studying.The thesis mainly focuses on structured trade finance from bank point of view, According to the traditional international trade theories and the practice of foreign bank. Through construction the structured trade finance and an empirical examination .By analyzing its environment and application in china. Make a research and analysis to its theoretical problem and practical problem. The thesis begins with a brief illustration of the structured trade finance, analyzing the characteristics and advantages of it. Then introduce some finance tools and the instruments of mitigating the risk used in constructing the structured trade finance and construct the model on its basis. To made it more practicable ,the thesis also analysis some typical practices . Then the thesis makes a further study in constructing the application frame of structured trade finance from a macro point of view and its construction procedure from a micro point of view. At last, analyzing the application environment and problem of it and proposing relative recommendations on how to develop it in china. That would help to increase the level of structured trade finance in china.