Risk Prevention of Letter of Credit in the International Settlement

With the globalization of trade and deepening of China's foreign trade,letter of credit has been one of the most important settlement tools which is widely used in international trade settlement.However,due to the complexity of the letter of credit transactions and credit system itself,meanwhile,the bankers only consentrate on document,focus on complying presentation only regardless of other characters,different customer habits,different trade patterns and information transfer method exist in different countries the settlement of the letter of credit has been full of risks.In order to make good use of credit,bankers must identify the sources of risk and take effective preventive measures,lower the risk of credit,provide good service to our customs.