The Research Of International Factoring Risk Prevention In Bank Of China Liaoning Branch

Since the middle of 1990's, international factoring has been wildly used in the European countries, the United States and Southeast Asia and developed rapidly in the world of international trade. International factoring was introduced in China in 1992, and played an increasingly important role over the years. With market fluctuation of these days, this product will help to reduce the credit risk, expand the export sales and explore the global market. Especially after the crisis, as the demand of the international market decline, the exploration of new markets seems more important to the enterprises. In addition, international factoring provides trade financing to the enterprises, and ensures the collection of the receivables on demand, which reduced the risk of fluctuation of foreign exchange. Besides, international factoring is an important international settlement product of commercial banks. The interests and fees are significant parts of the profits of the banks. As the spread of the global financing crisis of 2008, the risks of export companies are increasing, which diminishes the profit margin of the commercial banks. Risks control becomes an urgent problem of the banks.In this thesis, theory is analyzed, examples and statistics are demonstrated, business process and risks in real practices are discussed. The first chapter of this thesis is an introduction of the background of the topic, the aim of the study, research status at home and abroad and literature review and the methodology of study. The second chapter talks about the origin and development of international factoring as well as the analysis of the innovative theories in our country in recent years. The third chapter introduces the product of international factoring in bank of China, Liaoning Br., and raise problems in business practice. Those problems are analyzed and business risks are discussed in Chapter four. The fifth chapter solves the problems and proposes solutions from prospects of risk warning and mechanic construction. In conclusion, international factoring risk can be identified and prevented, as long as the full understanding and effective risk control, international factoring can row in Liaoning healthy and rapidly.