The Study On The Risk Precaution Of M Bank Acceptance Bill Business

Under the background of the continuously deepeningof China financial reform,it is the key time for the development and transformation of China financial reform.As one of important settlement meansof commercial bank,China trade billhavemadesubstantialprogress since 2000,thereby driving it to be the most importantintermediate business of commercial bank and the settlement and financing tool of company.As one of the most importantoff-balance-sheet activities,China commercial banks pay more and more attention to the development of trade bill because it can increase income and optimizeasset allocation,thereby creating a new profit growth pole for commercial bank.In addition,China companies’ demand for trade bill is stronger with the decline of financing cost and the broadening of financing channels led by the continuously development and improvement of China financial environment.However,the risks issuesassociated with commercial bank’s trade bill sharply increase with its rapid development.In recent years,financial crime associated with commerce bank’s trade bill becomes the main crime formin financial industry.A representative example is M commercial bank’s 3.8 billion trade bill violation case.The occurrence of commercial trade bill’s risk will not only lead enormous losses to commercial bank,but also associated companies.Hence,it is important to analyze the risks of China commercial bank’s trade bill,and to eliminate and mitigate the potential risks,thereby facilitating sustainable development of China commercial bank’s trade bill business.The paper analyzes multiple risk factors associated with China commercial bank’s trade bill business including the defects of management system,employees’ weak risk consciousness,information asymmetry,the imperfection of risk management procedure and has presented matchingsolutionsincludingimproving internal control system,building long-term risk management strategies,intensifying employees’ risk consciousness,reducing the level of information asymmetry and improving internal risk management process,and so on to eliminate and mitigate these risks.The purpose of the paper is to provide constructive suggestions for M commercial bank to improve the operations of its trade bill business and to offer a reference for other commercial banks’ trade bill business risks management.