A Model Of Logistics Finance Risk Evaluation For Commercial Banks

The logistics finance means the financing or loans by logistics-related companies from commercial banks.It is a financial innovation that combines goods flow with funds flow.With it,commercial banks can widen their range of service with lower risks and enlarge the loans;and small and medium-sized enterprises can obtain needed funds and speed up their development.Currently,Chinese commercial banks offer 3 modes of logistics financing: advance payment,warehouse receipt pledging,and warehouse confirming.These modes form a three-sided cooperation among banks,logistics enterprises,and borrowing enterprises.The logistics finance has developed in China for only several years,and its scale is still small.There are currently such problems as risk-income imbalance among the participants,unavailability of a flowing-asset evaluating system, and an immature credit/loan management system.In the light of the characteristics of logistics finance and the operation of commercial banks,the Model of Logistics Finance Risk Evaluation(MLFRE) combines the property method and quantity method.Three main categories are selected:industry factor,business factor and logistics factor,which involve 28 indexes altogether.The layer analytical method and the border upon index comparison method were employed to set various layers and proportions.Next, mathematical statistics were conducted to calculate the MLFRE results.Then,a logistic finance item of one commercial bank is taken as an example. Through a comprehensive analysis,the result of the risk of the item is obtained. Comparing the merits and the shortcomings,the model has the advantages of maneuverability and practicability.The results or the points the commercial bank obtains show where the risk exists in the item.Thus the bank can improve its management correspondingly.Moreover,enterprises which need funds can also improve themselves to raise the points they can receive so as to obtain more loans.Finally,this paper uses the MLFRE indexes to propose measures against logistics finance risks:Choosing mature industries,conducting dynamic monitoring and analysis of the market,making sure of the truthfulness of the logistics business, investigating the overall strength of the enterprise;paying attention to the ownership of the property,demanding overlay value of the pawning commodity,choosing the third custodian prudently,and settling the transfer of the hypothecation.