The Issues,Risks And Countermeasures Of International Settlement Business Of Commercial Bank In China

International settlement is very necessary if the commercial bank wants to carry out international business. The handling charge and other income can add the profit of bank immensely, which come from international settlement. The commercial bank is also very important in the business of international settlement. If there is no bank, the international settlement business can not work anymore. In recent years, the trade between different countries increases with the development of the global economy. The growth of our imports,exports and the international settlement amount is an important source of bank’s settlement business. Our government has taken action in policy,laws and regulations to provide a good environment for settlement business. However, the foreign banks enter into China with the reform and opening-up policy, our commercial banks have a hard time in the competition with them. There exist many problems and potential risks in settlement business because of the history and reality. This article focuses attention on the analysis of problems and risks in the settlement business in order to preserve the profit of commercial bank.This article includes four main sections:The first part describes the current situation of Chinese commercial bank’s international settlement business. We introduce different bank’s products and business amount respectively, which take four major commercial banks for example. Besides, we represent the economic, policy and legal environment of chinese commercial banks. The banks can know the whole environmental conditions and forecast the development tendency according to these condition.The second part introduces the problems exist in the international settlement business, including the lack of innovation in the settlement product, the shortage of marketing talent, the deficiency of management system and the lack of client. These problems have significant negative impact on the development of commercial banks. Therefore,we come up with four relevant solutions.The third part analyzes commercial bank’s risks in international settlement business, which include financing risk, credit risks, operational risk, market risk and exchange rate risk. We introduce the source of different risks and corresponding risk prevention measures.The fourth part takes the letter of credit for example, introduces the basic business procedure, the importance of bank in the business, different risks and precautionary measures. Then we prove these through three cases. In addition, we show that the update of UCP600has an important impact on the international settlement business.