Research On Risk Management And Optimization Of Electronic Presentation Under Letter Of Credit Of Bank Z

In the Internet era, with the continuous development of international economy and trade, the requirement of efficient settlement, quick flowing of goods and low administrative costs has become more and more common among parties in the international settlement, as a result, there is an urgent demand of e-trading. Letter of credit is one of the principal means of international payment; however, the traditional paper forms cannot fully meet the needs of parties in the international trade transactions. With the development of e-trading, the means of presentation under letter of credit has changed accordingly:from traditional paper form to electronic form. Electronic presentation can make trade become paperless required, accelerate the speed of the flow of goods and documents, reduce transaction costs and management costs of companies and improve the management situation of companies, as the advantages are so obvious that it has become more and more popular in the international trade.Electronic presentation is a revolutionary change in document processing and an important advance in the field of international trade. However, due to imperfect technical means and lack of relevant laws and regulations, many new problems that need to be resolved urgently have derived. Bank Z has a leading position in the banking industry of China even in the world and its international settlement business is a major advantage in the industry. Today the electronic presentation under letter of credit has developed quickly in Bank Z. This essay aims to demonstrate some aspects of electronic presentation through the analysis of both theory and practice, including the features of electronic presentation, its progress and a variety of new problems that may emerge. Meanwhile, this essay tries to find some risk prevention initiatives to resolve the problems that many be derived in the electronic presentation practice of Bank Z. In a word, this essay intends to provide some ideas for Bank Z to better carry out the business in the future and to give some advices to promote the development of the electronic presentation.