A Study On The Risk Management In International Trade Financing Of Agricultural Development Bank Of China

With the rapid development of foreign trade,the banks in the international business competition is also increasingly fierce.As a kind of low cost and yield high effective financing way,international trade financing has become the focal point of contention.Generally speaking,the risk of international trade financing is lower than the traditional credit business.The main reason is that it matches real trade.It has the advantages of closed operation,short time,stable upstream and downstream supply chain,source of repayment,easy to control the use of bank funds and so on.In recent years,the amount and range of Chinese foreign trade expands rapidly,the main foreign trade expansion to the multi-level,diversified international trade settlement tools and new business launch,and the corresponding way of international trade financing is also showing a hitherto unknown diversity,complexity and specialization,the potential risk is also growing and change.As the policy bank of provide service for "three rural issue"-Agricultural Development Bank of China(hereinafter referred to as the "ADBC"),because of the particularity of agricultural policy bank function particularity,the particularity of the support of customer groups,and the special of the system operation mechanism,the various links in the risk management of international trade financing in the focus and other commercial banks are different.The international business of ADBC started late and developed slowly,at present,the risk awareness is weak and the experience is insufficient.So the special research on the risk management in international trade financing of ADBC has a strong practical significance for deepening the concept of risk management and improve the risk prevention capacity.This paper consists of five parts.Firstly,the purpose and significance of the whole paper,the research status and problems at home and abroad,and the research methods are introduced.Then the paper introduces the current situation of the development and management of international trade financing of ADBC,and summarizes the four problems of the trade financing business.Then the main points in the issue of positioning analysis of the risk management of trade financing business of ADBC,through investigation of trade financing risk types,from the two aspects of the internal causes and external causes are summarized,analyzed the causes of the risk management,the risk of several agricultural issues the main trade financing products are analyzed,and the application of RORAC model measure of risk.Finally,to resolve the current farming issue of trade financing risk and causes problems,put forward to strengthen the risk management of constructive suggestions,in order to deepen the concept of risk management,strengthen trade financing and trade financing business risk management,enhance the ability to prevent bank trade finance business core competitiveness.