Research On International Trade Financing Risk Control Of Commercial Bank In China

In recent years, the amounts of trade finance are continuously enriched, which bring benefits to the bank. At the same time, the risk of trade finance is also raised. In the context of the large-scale development of trade finance, how to improve the bank risk management capabilities and strengthen risk management system is to be discussed in this article.This paper firstly analyzes the current situation of the development of trade financing and the significance of trade financing for commercial banks and finance demand side. Then this paper presents various risks by the rapid development of trade financing. This article also discusses the status quo of China’s commercial banks in trade finance. On these basis, the paper start to explore how to build an effective and professional trade finance risk management system.Trade finance has special risks compared to traditional bank loans. In order to prevent the risk of trade finance, infrastructure is risk control for these specific risks such as exchange rates, trade and operating.This article focuses on the three aspects of loan, before, during and after, which are thoroughly analyzed. Credit is the first step in the operation of bank credit. The key to build trade finance risk management is a professional step of trade finance credit link. Relying on the trade chain is the feature of trade finance.In my opinion, since the development and the creative of trade financing, risk control cannot become the barrier to trade finance innovation. Instead, risk control should be the driving force of trade finance.