Commercial Bank Of China 's International Trade Finance Business Innovation

In recent years, the rapid development of international trade makes great contribution to the national economy while provide a huge potential market for trade financing businesses among banks. With the development of the international trade volume, trade style and the export-import structure, the traditional trade finance businesses can't cope with the rapid economic development, while urgently require more creative trade financing instruments. It is more and more urgent to innovate the trade finance businesses in China's banks among which the Supply Chain Finance is on the top of agenda. The writer has been working in the Royal Bank of Scotland for more than one year and mainly involves in Supply Chain Finance programme, together with the two years theory accumulation in the university, and researches on Supply Chain Finance subject in the graduation paper, which has great theoretical and practical meaning.This article firstly reviews the basic theory of international trade finance innovation, and discusses the theoretical and practical meaning to innovate international trade finance. And then states the current situation of international trade finance businesses in China's commercial banks, in which summarizing and comparing the traditional trade finance businesses, such as financing instrument under L/C, collection and remittance, international factoring, forfaiting and structured finance, etc.. The essential content of this paper is to discuss the leading creative activity in trade finance businesses among commercial banks, which is Supply Chain Finance business.Supply Chain Finance, as a new trade finance business, can meet the economic development better. It is characterized by find a leading core entity in the supply chain-usually the ultimate buyer, utilizing the credit advantage and financial advantage to finance the whole supply chain, which accelerates the suppliers'capital and reducing the suppliers'financing cost efficiently and strengthens the competitiveness of the whole supply chain. Through the specific introduction of the concept and business flow of Supply Chain Finance, stresses the characters and efficiencies of Supply Chain Finance and also the relative advantages of buyers, suppliers and banks in this process. Through the case study to develop Supply Chain Finance platform on the basis of cooperation between domestic bank and foreign bank, not only illustrates the relative advantage of Supply Chain Finance, but more importantly, pose a proposition the co-operate model with foreign banks, which is very instructive to domestic banks. In the end, according to the main problems and obstacles, develop supply chain finance business in China's commercial banks which has great feasibility.