Analysis Of And Prevention From The Operational Risk Of The International Settlement Business Of Agricultural Development Bank Of China Liaoning Branch

Directly led by State Council, Agricultural Development Bank of China (ADBC) is a policy financial institution. It has been fully implementing the national grain and cotton’s purchase and sale policies, and also the related economic and financial policies since its establishment in1994, and ADBC has been playing a very important role in promoting the agricultural and rural economic development. Aiming at pushing forward and enlarging the opening to outside world of China’s agricultural industry, supporting enterprises in better use of "two markets, two resources" to participate in the international competition, gradually strengthening the tight connection of China’s agricultural industry and rural economy with world economy, and building ADBC into "new rural bank and modern policy bank in China’s agricultural industry", ADBC formally established its International Business Department in September2006according to the unified plan made by Party Committee of ADBC Headquarter. All systems subordinate to ADBC have been making great efforts to develop the international business in a full and stable way and Liaoning Branch formally commenced the international settlement business in December2008. Full commencement of business entitles ADBC Liaoning Branch with wider space for development. Nevertheless, problems and risks existing in handling with international settlement business are also inevitable. How to realize the steady and healthy development of its international settlement business with controllable risks becomes the burning question that Liaoning Branch is facing now.By using multiple research methods, that is, field investigation, indirect survey and comprehensive summary and analysis, etc, the author, in this paper, studies the general situation of ADBC Liaoning Branch’s international settlement business and points out the burning requirement of preventing from risks in the operation of international business. On the basis of comparing the current international settlement method of ADBC Liaoning Branch with international routines and rules, author specifically analyzes currently existing risks and hidden risks in international settlement business in aspects such as remittance, collection and L/C, etc, and also puts forward suggestions about preventing from above-mentioned risks in operation according to practical situation, which are intended to solve the problem of preventing from currently existing and hidden risks in the practical international settlement operation for ADBC Liaoning Branch.The paper composes of six chapters. Chapter One is Introduction, which describes the putting forward of paper topic, study method and structure; Chapter Two is Comprehensive Statement on Theories Related to International Settlement Business and its Risks; Chapter Three is Analysis of International Settlement Business in ADBC Headquarter and Liaoning Branch; Chapter Four is Analysis of Risks in Handling with International Settlement Business in ADBC Liaoning Branch; Chapter Five is Suggestions about Preventing from Risks in Handling with International Settlement Business in ADBC Liaoning Branch; Chapter Six is Conclusion and Expectation.