Study On Optimization Of Operation Mode Of Supply Chain Finance Of H Bank

In the wake of a furious competition in the market and the growing industrialeconomy, the "large and comprehensive" corporate system is on the edge of collapse.The competition between corporations has gradually turned to the area of supplychains. In order to cut down the financing costs and boost sales and competitiveness,there is an increasing need for supply chain finance for corporations stepping intodiverse businesses on the supply chain of " production, supply and marketing ".Meanwhile, against the background of the commercial banks across China settingabout the strategic transformation, the supply chain finance plays an active part inletting treasury risk management loose from Basel II, optimizing the customerstructure and the ratio of businesses, facilitating cross-selling as well as expanding theintermediary business.The European Currency describes the supply chain finance as "the most populartopic"’ among bank transactions. A survey shows that the supply chain finance is themost significant business growth in the field of the yearly working capital loans forinternational banks recently. When domestic commercial banks push forward thesupply chain finance to seize the market, H Bank, a member of them, establishes itsown brand and works out a complete operation mode in supply chain finance bymeans of experience in trade finance and advantages in skills and staff. However, howto stand out with a highly characteristic product in the furious competition and acharacteristic service and product remains the top issue for H bank.The paper gives an introduction to the operation mode of the supply chain financefrom the guidelines, the operation system, the characteristic product and the riskmanagement of H Bank, and analyzes the effect thereof in combination with practicalcases. On this premise, a profound analysis is made on the problems in the supplychain finance inside and outside H Bank. The internal reasons which constrain the further development of the supply chain finance lie in the traditional way of customerentry in credit mode, the limitation of the product oriented development mode, lack ofa complete credit assessment system and the lagging electronic platform while theperilous exterior circumstance results from the furious competition with itscounterparts at home and abroad, tendency of centralized administration on capitals ofcore corporates, interest deviation due to information asymmetry and the desiredregulation from governments and the third party.On the basis above, the paper puts forward the following suggestions to optimize theoperation mode of the supply chain finance of H Bank:First, H Bank should position its development strategy, promote the business ofsupply chain finance and establish its characteristic brand through innovation inproducts and flexible combination of the present products;Second, when expanding the business, H Bank should establish a brand-new riskcontrol system by introducing advanced assessment technology and improving its riskassessment system and establishing a risk-remote system. And Third, establishing afirst-class electronic platform to achieve the long-term goal of H Bank in supply chainfinance to keep abreast with the fast-paced electronic business.The paper studies the internal motivation of commercial banks in supply chain financeby means of the operation mode of H Bank and concludes that the deficiencies atpresent is how to solve the problem of tricky finance for medium and smallenterprises on the commercial bank’s part by adjusting customer structure, andtherefore underlies the further development of the supply chain finance business andprovides more options for enterprises which financed through the supply chain.