Letter of Credit and Legal Issues of International Trade Finance

Author: Li Jinze
Publisher:
Publish Date: 2004-02-01
Features: The innovation of commercial banking has become an important trend in the contemporary financial market. Since the mid-to-late 20th century, with the acceleration of economic globalization, the development of financial technology, and the continuous breakthroughs in financial theory, the innovations in commercial banking's business products, management methods, marketing, and other aspects have attracted widespread attention from all sectors of society: traditional deposit and loan businesses and housing finance have been constantly updated; the status of intermediary businesses has been increasingly elevated, with new intermediary businesses playing an even more prominent role; new international trade financing businesses such as factoring and forfaiting, which have been influenced by international commercial banking, have gained favor among domestic commercial banks; as the reform of commercial banks becomes increasingly urgent, the disposal of non-performing assets has become a major concern for commercial banks. The financial asset securitization-related businesses and services arising from the disposal of non-performing assets will become one of the focal points of Chinese commercial banks in the 21st century. It is worth noting that in the process of banking business innovation, we cannot overlook the new legal issues and related legal risks that arise with the innovative businesses. In fact, the introduction and development of new banking businesses have given rise to many new legal issues and have led to the development of a large number of new laws, regulations, and rules, especially the regulatory rules of regulatory authorities and the interpretations of the Supreme People's Court, have become an important institutional basis that contemporary commercial banks cannot ignore in their innovation. To effectively prevent the risks of financial innovation, it is essential to study and explore the legality and compliance of innovative products and tools. This is not only a critical issue that internal legal advisors and other internal control personnel in commercial banks must face, but also a key concern for commercial banking business personnel, as well as an important legal issue that the legal theory community and the judiciary need to pay attention to. Based on this, we have organized legal and business professionals from the frontline of commercial banks with high theoretical and practical standards to write the "New Banking Businesses and Regulations Series" to address the doubts and difficulties in banking businesses. The series is divided into six volumes: "New Deposit and Loan Businesses and Regulations in Banking," "New Intermediary Businesses and Legal Issues in Banking," "New Legal Issues in the Transformation of Banking," "New Legal Issues in Letter of Credit and Trade Financing," "New Housing Finance Businesses and Regulations," and "Banking New Business Regulations Handbook." Each book focuses on guiding banking practical work, emphasizing the introduction of new products, new characteristics, and new changes in the development of banking businesses, as well as practical operations. It also explains the corresponding legal issues, analyzes the legal environment, and has strong guiding and practical value, demonstrating unique value:
● Based on the actual innovation of banking businesses and legal systems in China's commercial banks, it fully reflects the new development dynamics and trends of banking innovation in contemporary commercial banks.
● Learns from international experience and has a certain foresight, evaluating the cutting-edge tools, products, and systems in the international financial market.
● Emphasizes practicality, analyzing and introducing the operational links and procedures of new businesses, focusing on the solutions to legal issues and legal risks of new businesses.
● Focuses on legal difficulties, innovative businesses, and related systems, fully incorporating the mainstream new businesses of contemporary commercial bank development, particularly highlighting the new businesses and issues commonly faced by Chinese commercial banks.
● While emphasizing practicality, it also looks ahead to the development of banking businesses, conducting forward-looking legal analysis and discussions.