Foreign Official Export Credit Agency Operation Mode To Explore And Enlightenment

The Official Export Credit Agency is a quasi-government financial institution, which is set up for the sake of promoting export as well as encouraging oversea investment. With the globalization of the world economy, more and more countries and regions are becoming members of WTO. As the requirement of WTO and as broadly accepted international customs, the export subsidy and tax preferences will gradually fade out from the export support policy in most countries. Therefore, the export credit will be more important in international trade and economic cooperation. Since the establishment of the first OECA in British (the Export Credit Guarantee Department), in 1919, many countries have set up their OECAs, including developed countries and developing countries. These OECAs are specialized in the field of export credit operation. With the fruitful work of OECAs and the cooperation between them, the world trade and oversea investment has been greatly enlarged. And the OECAs will become more active too.China's first OECA was set up in 1994,named the Export-Import Bank of China. It was set up to deal with the export credit in China. While at the same time, the Bank of China can still deal in the export credit loan and the China people's Insurance Company can still deal in the export credit insurance. This means all of the three agencies are in the field of export credit, but the EIBC is a "state policy -related bank". In 2001,a new China Export Insurance corporation was set up to exclusively deal in the export credit insurance. That is what the Chinese OECA present -one for export credit loan, one for export credit insurance.After entering into business, the EIBC has done a lot to promote the export of China' s machinery, complete-plant equipment and high-tech products, won very good reputation both at home and abroad. However, with a history of just about 12 years, and has been operating in a high-speed developing and reforming stage, the EIBC still has a lot to be improved in different aspects. This is one of key topics of this article.This article includes three chapters as well as an introduction at the beginning. Chapter one is the "Brief introduction to the OECA". First of all, the setting up of OECA is derived from the change of world's political and economical environment, and it is extended and prevailed because of the increasingly serious competition ofmarket. Then I summarize the theoretical foundation of its origin. As we all know, financial market is the basic mechanism for financial resources allocation in the market economy. However, due to the public goods insufficiency and monopoly existing in the financial market, the financial market is not perfect. So the OECA is became the instrument for the government to macroeconomic control, and supply a gap of the market economy failure. Meanwhile, the OECA is also a means to upgrade the competitiveness of export, counterwork the other OECA and also carry out export subsidy legally. In this chapter I also briefly introduce the American, British, Germany and Japanese OECAs. After that, I sum up the characters of its operation, from orientation and legislation, the nature and purpose, the operation way, the resource of fund, the business areas and the supervision. All of these contents pave the way for much detailed discussion in the next part.The second part is the core of the paper;I make a more detailed comparative analysis of the operating pattern of the Export-Import Bank of the United States, the Japan bank of International Cooperation, the Export-Import Bank of Korea and the Export-Import Bank of India. I only want to sum up their predominance in the competition. And I also want the readers can know them more.The third chapter is the essence of the paper, and is my original intention too. First, I introduce the background of the Export-Import Bank of China, its function and orientation, as well as its current business scope and management status. After its setting up, the EIBC has done great contribution to our country, it boosts up the competitiveness of Chinese products and companies, optimizes the product structure;it carves out new oversea market, impulses the implementation of the strategy of market diversification;it helps Chinese corporations stepping abroad and challenging the world' s leading brand;it also impels China' s policy of economic diplomacy. The second part of this chapter analyses the conditions and problems exist at present, they are mainly: lack of legal basis, short of capital and fund, and also some problems existing in governing. Based on the above research ,in the third part, I brings forward some suggestions about the reform and development of our country' s policy-related finance system. In my opinion, the government should unveil a special law as soon as possible, give it more powerful government backing, and establish prudential risk management. Meanwhile, the bank itself should make good use of the government' s financial assistance fund, reform its credit pricing mechanism, adjust its business areas and so on.