Author(s)

Zhou Qiongqiong

Corresponding Author

Zhou Qiongqiong

Abstract

Letter of Credit (L / C) settlement method is a major settlement method in international trade. Under the letter of credit settlement method, the bank acts as an “intermediary” between the buyer and the seller and promises to obtain the payment from the bank as long as the seller submits the required documents in accordance with the letter of credit. Get the goods. Therefore, the letter of credit is a kind of bank credit. This kind of bank credit solves the concerns of buyers and sellers on payment and delivery to a great extent, making the letter of credit an important settlement method in international trade settlement. However, under the settlement of the letter of credit, the letter of credit and the contract are independent of each other, and the bank manages the “single” regardless of the “goods”, and there are many types of letters of credit. The banks involved include the issuing bank, negotiation bank, notification bank, and reimbursement bank. Waiting for multiple banks, these banks do not necessarily know each other, coupled with the long transaction time, there are also many risks.

Keywords

Credit, Risk, Prevention