The Research On Risk Management Of Letter Of Credit In GS Bank

With the continuous development of world economy and under the push of economic globalization,international trade becomes more and more frequent and settlement of payment in international trade keeps on growing consequently.For the banking industry,one immediate task for promoting the competitiveness of the comprehensive is to develop the international settlement business.In the international settlement business,letter of credit business has maintained a strong momentum of development.The letter of credit business as one of bank middle business,because of its complexity of the process,involving the link diversity,has a rich brings to the bank middle business income.So the development of the LC business becomes one important task of the Banks development.However,the benefits and risks always accompany.The payment of letter of credit involves more links,and its transaction process is relatively complex,thus the risk is bigger.In the current economic situation,import and export enterprises often from their respective interests,once encounter with trade disputes,will do utmost to pass the risk on to the bank in order to preserve their own interests,which will often bring huge economic losses to the bank.So to explore the international settlement risk especially for the LC settlement risk management study will bring great meanings to the healthy development of the intermediary business in banks.In addition,GS bank letter of credit business in recent years has exposed many problems and risk events,which put forward higher requirements to GS bank operators.Therefore,it has practical and theoretical needs to research on the risk management of LC business in GS bank.Based on commercial bank risk management theory and the Basel bank risk theory,this study will use the theory with practice,the methods of literature review,investigation and study,with reference to some experts and scholars home and abroad on commercial bank risk management and credit business risk management research.This article will take GS bank as an example to analyse the GS bank credit business development present situation and the existing main problems of GS letters of credit risk management,respectively from two rival aspects-the import letter of credit and export letter of credit business process.Through analysis and study,the following conclusions will be given:In order to achieve business risk comprehensive scientific management,GS bank must set up foreground and background risk management coordination mechanism and establish the LC business risk management standardization process.Real-time monitoring of all the LC parties in each link of the capital credit conditions and the pressure on dropping business operator's actual operation risk will work conscientiously in risk prevention and do great favor to build the GS bank LC business perfect risk management system,thus enhance GS bank research level dealing with LC business risk management.This thesis is divided into the following six chapters:Chapter 1 is introduction,mainly introduces the research background,research purpose of this paper and the research significance,research ideas and research methods,research contents and research framework,and the innovation points;Chapter 2 theoretical foundation and literature review,this paper elaborates the theoretical basis in relation,citing this thesis related references;Chapter3 GS bank credit business development present situation and GS bank LC business operating mode are briefly introduced.GS bank LC business risk management situation,its main problems will be analyzed.Chapter 4 analyzes the main process in the export and import LC of GS bank documents center and fixes out the main points of risk existing in the business process,and cites the paper analyzed the main problems in actual case;Chapter 5 introduces GS bank credit business risk management measures,based on the analysis of the first two chapters,put forward the strategies of the GS bank credit business risk management and related measures to deal with the main risk;Chapter 6 gives research conclusion and research prospect,and sums up the research achievements of this paper.Characteristics and innovation of this paper lies in:one is the research point of view.This article starts from perspective of GS bank front and background processing center and combines the export and import LC processes to analyze and find out the risk,which will be conducive to the improvement of the LC business risk management with the strategies and measures of risk management.The second is on the research point of view.In order to handle with the main risk points in the LC process,this paper puts forward the specific measures to deal with risks,in combination with the practical situation of GS bank credit risk management.These measurements with strong operability are easy for business worker to grasp and use.Research results may have a certain guidance value for strengthening the risk management of commercial banks.