Research Paper On International Trade Finance Development By J Branch Of Industrial And Commercial Bank Of China

Since our National Financial System Reform is continuously progressing, the China financial market is increasingly matured, our country also gradually integrated with international market, and to some extent, it will increase the competition within local banks. Nowadays, local commercial banks also treat international trade finance as their important part of their business, international trade finance also play a contribute role in promoting commercial bank’s core competitive advantage, ability in international clearing, finance deals, local and foreign deposit business, the contribution of intermediate services towards commercial bank’s income contribution, therefore, it is significant important for commercial banks to study international trade finance in depth.This essay will use one of the ICBC local branches, the J branch, as the study subject, through the case analysis of the J branch’s international trade finance development; this essay will study the business demand on international trade finance by our import and export local enterprises, through the study on the process of providing international trade finance, we will find out and see if there can be a few measured policies be made to solve the problems and issues facing by the J branch. Through in-depth analysis, this essay was able to conclude:1. The J branch had achieved certain progress by spending resources in developing international trade finance business; 2. The enterprise demand in this region for international trade finance is large; 3. There are a few existing problems faced by the J branch, such as product diversity, credit limit process lag, limited human resources, business personnel enthusiasm not high, simple client structure, concentration in large enterprises. All these problems had slowed and restricted the growth development of international trade financing; hence certain policies are required to come out in order to increase the competitive advantage of the J branch. For example, streamline the credit limit process, provides education and training to staffs, improve international business examination incentive mechanism, promote quality client market and its retrospective business volume, so as to expand the J branch’s business in international trade finance, to create win win situation for both bank and enterprises by strengthen the relationship between bank and local enterprises. As a result of all these, so that, it can make international trade finance become the positive driver for International Business and Economic development.