Prevention Of Commercial Bank Trade Finance Risks

In the world today, global economy and keen competition among commercial banks, make international trade financing widely used. However, international trade financing involves lots of risks, since it relates to both domestic and overseas markets, merges the credit of both companies and banks. From the stand of commercial banks, this article will first introduce some financing products which preferred by customers. In the light of practical cases, the author points out the risks under each trade financing product. At last, comparing with the risk management methods of commercial banks in developed countries, it gives some feasible measures on international trade financing risk management in domestic commercial banks. In this article, the author puts an important part on the ways to improve risk management on trade financing in today’s unique economic environment. In the one hand, domestic commercial banks should learn from others in the western world; on the other hand, they should care lots of their own realities.