In recent years, China’s international trade is growing very fast, and in this context, the volume of international trade financing business of commercial banks in China is also increasing, although these international trade financing business can bring huge profits to commercial banks, but in the process of developing their international trade financing business, commercial banks are often inevitably faced with a series of risks. However, in terms of China’s commercial banks, the lack of experience in international trade finance risk management, so in order to make the commercial bank’s international trade finance business to achieve better development, the first must be effective management of international trade finance risk, so the study of China’s commercial banks international trade finance risk management is of great significance.
The problems faced by China’s commercial banks in international trade finance risk management
(A) compound international trade finance business talent is relatively lacking
As far as the actual situation in China is concerned, in the process of developing international trade financing business in commercial banks, the reason why it is not effective for the effective management of international trade financing risks, an important reason is the lack of composite international trade financing business talents. Because China’s commercial banks to start foreign exchange business for a relatively short period of time, and the training of personnel did not effectively keep up with the development of international trade finance business. In addition, the commercial banks themselves are very short of international trade finance talents, and the limited international trade finance talents are mostly concentrated in the management, can not directly communicate and contact with customers, so that the international trade finance business lost the marketing channels to customers, which makes the risk management of international trade finance can not be effectively carried out. In the process of developing the international trade finance business of commercial banks, many business personnel often only understand the international settlement business, but the lack of understanding of credit management, and some business personnel can not effectively control the market development prospects, resulting in its inability to grasp the overall international trade finance business of commercial banks in China, and this has led to the increase in the risk of international trade finance of commercial banks in China. The increase of international trade financing risks of commercial banks in China. Therefore, the primary problem faced by commercial banks in China in the process of international trade finance business risk management is the lack of composite national trade finance business talents.
(2) Lack of scientific understanding of the risks of international trade finance
From the current business structure of China’s commercial banks, it is easy to find that the proportion of international trade finance business in all business is still very small, and because the development of international trade finance business in China’s commercial banks is not long, so it lacks a scientific understanding of the risks of international trade finance. It is the general lack of scientific understanding of international trade finance risk in commercial banks, so it is not better to manage the risk of international trade finance. Many commercial banks in the international trade finance business to optimize the quality of credit assets and improve their profitability are still lack of scientific understanding. Although the senior management of some commercial banks have a certain understanding of international trade finance and its risks, but in the actual process of business, they are often not directly involved, and the grass-roots business personnel lack of practical experience, so it leads to two extremes in the process of international trade finance business: one is too worried about the risk and dare not carry out business The other is the wrong belief that the international trade finance business is risk-free, the lack of awareness of fraud in the international trade finance business, so it makes commercial banks face serious international trade finance risks. At the same time due to the lack of scientific understanding, so it also makes the risk management of international trade finance can not be effectively carried out.
(C) internal risk management prevention system is not perfect
At present, China’s commercial banks in the development of international trade financing business, the financing risk can not be effectively managed, there is a very important reason is that within the commercial banks, its risk management prevention system is not perfect. Because of the relatively late start of China’s commercial banks international trade finance business, so in the lack of experience. And most of the foreign exchange business of commercial banks in China is a relatively weak link, so that makes the operation of business between different departments and different branches within the commercial banks there is a certain degree of independence, the lack of unified management. Moreover, for commercial banks as a whole, they have not established a standardized and unified business operation process, so they are often unable to effectively check each other, share resources and monitor risks in the process of carrying out international trade financing business. In many commercial banks, have set up a special international business department, this department independently for credit risk and business operation risk control, but from the commercial bank as a whole makes its risk management prevention system is not perfect, and therefore can not effectively manage the risk of international trade finance.
Commercial banks international trade finance risk management strategy
(A) further enhance the risk management ability of business personnel
In the process of risk management of international trade financing in commercial banks, the primary problem is the lack of professional talents, because the development of international trade financing business needs to rely on the relevant business personnel, and if the grassroots business personnel lack of understanding of the risks of international trade financing and its management, it is impossible to effectively manage the risks in the process of business development, so that commercial banks must Therefore, commercial banks must further improve the comprehensive quality of relevant employees. First of all, commercial banks need to strengthen the training of the existing personnel engaged in trade finance business, through training to make them become qualified international trade finance business personnel, master the basic international trade finance risk management tools, so that they can effectively avoid the risks in the process of business. At the same time, commercial banks can also introduce highly qualified personnel with rich business experience, using their professional knowledge and rich experience to better manage international trade finance risk. At the same time, it is also necessary to continuously strengthen the risk awareness of business personnel in the process of conducting business, so that they can have a scientific understanding of the risks of international trade finance, and constantly improve their ability to recognize and prevent counterfeiting. Only by further enhancing the risk management ability of business personnel can the risk of international trade financing of commercial banks be effectively managed.
(B) effective business process risk control
To better manage the risk of international trade financing, commercial banks must also pay attention to the control of business process risk. First, the need for each? Only by relying on perfect rules and regulations can the risk of international trade financing of commercial banks be managed more effectively. In the process of credit business, it is necessary to ensure that it is used for real trade purposes and has a real trade background. At the same time in the process of financing must be implemented in a comprehensive asset collateral, and the subject matter of the collateral to be clear, the transfer of ownership of the collateral to be implemented. Secondly, it is also necessary to establish a system of checks and balances, because in the process of carrying out international trade finance business, often involving many positions, only to make each position effective checks and balances, to make the entire business process more transparent, to avoid the risks arising from a particular position. International trade finance risk management is throughout the entire business development, must be in the whole process for the effective management of risk, in order to better promote the further development of commercial banks international trade finance business.
(C) the application of advanced risk control strategies
In the process of risk management of commercial bank international trade finance, the risk can also be controlled through the application of advanced risk control strategies, and in the process of commercial bank international trade obligations, the common risk control strategies include international trade finance risk diversification strategy, international trade finance risk suppression strategy and international trade finance risk transfer strategy. Through the application of these advanced risk control strategies, better risk management can be carried out to avoid the impact of international trade finance risks on business development.
Conclusion
China’s commercial banks international trade finance business started late, compared with foreign countries, there are still certain deficiencies in risk management, but at present, as China’s commercial banks pay more attention to the international trade finance business, the management of international trade finance risk is further increased, which is very important to promote the development of China’s commercial banks international trade finance business. This is very important to promote the development of China’s commercial banks’ international trade finance business.
