| Letter of credit is an important instrument in international settlement in China Construction Bank Dalian Branch, the related commission and financial interests are great part of banking profits. As the financial crisis growing worse, refusal under letter of credit are getting popular. To identify the risks in letter of credit deals and find out the ways of solving the problems respectively earn an urgent attention in commercial bank.The first part of this paper introduces the background and purpose of research, as well as the ways of researching. The second part is about the theories of refusal. The third part is the introduction of letter of credit business in China Construction Bank Dalian branch and the problems in export settlement. The fourth part analyses the risks of letter of credit in banking practice. At the end, in the view of institution construction and risk precaution, the paper proposes a programme in solving the problems respectively.With the analysis of theories and contrast of data, this paper is trying to solve two main tasks: the first is to find out the risk of the working flow, the second is to demonstrate the different risk degree in each areas, and then make suggestions of solving the problems.The innovation and contribution of the paper: 1st, in order to avoid the loss of documents received and dispatched, the bank should use electronic booking system instead of handwork. By this mean the bother of data checking, the confusion of booking information, and delay of supervising should be solved. 2nd, to distribute persons or forces systematically and strategically in dealing with the letter of credit business of different risk degree. It provides the bank a way of keeping efficiency and controlling risks. 3rd, in order to avoid the settlement and financial risk, the bank should make risk precaution by statistics and information collected, and it offers the bank a better way in control risk before it really happened. |
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