Research On Risk Management Of LC Payment Method Of JS Bank

With international trade settlement more and more frequent,letter of credit gradually supersedes commercial credit,development has become the most important settlement tool in international settlement.Letter of credit is one of the payment instruments for international settlement,it is very important to promote the smooth development of international trade,the contradiction between the two sides of the import and export is resolved,it is also facilitates capital turnover.Payment by LC at the same time as promoting trade,it is also a risk in itself,how to carry out risk prevention,how to adopt a management method that suits its needs and works well,become a bank in the actual business should focus on and in-depth study of the problem.JS bank is a large commercial bank in China,establish agency relationship with many banks around the world.The letter of credit business is a basic business of JS bank.From 2013,JS bank letter of credit business is increasing year by year,but with the domestic economic downturn,the overall size of the financing business under the LC is steadily stable,risk events occur one after another.Therefore,JS bank needs to carry out letter of credit risk management,ensure the normal operation and development of the international banking business.This thesis takes JS bank as the object of study,through the JS bank letter of credit risk management status analysis.First of all,ldentify the risk of lc payment method of JS bank,based on this,the problems and causes of payment by LC in JS bank are analyzed,and finally formulate corresponding countermeasures,to solve the problems of JS bank's risk management in LC.Include: perfect the soft clause risk prevention system,perfect the beneficiary supervision mechanism,perfect the applicant supervision mechanism,strengthening the operation of LC operation management,Improve the comprehensive quality of personnel.So as to effectively carry out the risk control of letter of credit,enhance the competitiveness of nternational business.