Risk of International Payment through Commercial Banks in the form of L/C Documentary Credit

Import-export payments by commercial banks increasingly account for a large proportion and have a very positive impact on the development of foreign trade activities in particular and the economy in general. Like other business fields, import-export payment activities of commercial banks, especially L/C documentary credit payment methods, contain different risks and can occur. With all relevant subjects, especially the intermediary "bank". Therefore, identifying and controlling risks in the L/C documentary credit payment method is very meaningful for import-export payment managers as well as for working staff. Cooperate in this field, and only then can commercial banks that perform import-export payment services hope to achieve success in their professional activities. The article studies the theory of L/C documentary credit payment methods, risks in documentary credit payments for exporters, importers, issuing banks, notifying banks, banks. Nominated bank, confirming bank, document discounting bank; Analyze actual documentary credit risk cases in Vietnam and provide solutions to limit L/C documentary credit risks.