A Study Of H Bank’s Supply Chain Finance Mode Of The Automotive Industry

In recent years, supply chain management has been popular in almost all industries as anew management mode along with the deepening of economic globalization. Due to theunsound financial security system, the asymmetric information between financial institutionsand enterprises, lack of mortgage assets in Small and Medium-sized Enterprises(SMEs) andsome other reasons, SMEs are facing very serious financing dilemma which is a bottleneckconstraint of the development of supply chains. Also, it has caused worse stability and higherfinancial cost of supply chain. Supply Chain Financial Mode has some effect on solvingSMEs’ financing dilemma and can bring significant economic benefits to banks. So more andmore banks invest more in the development of Supply Chain Finance(SCF) and bring it intotheir market position. But because it is not long since SCF came into being in our country, therelated theories of SCF and its risk control have not been mature yet. So it’s the high time forbanks in our country to probe further into the sound path of development for SCF.SCF are different from traditional financing modes greatly. Traditional financing modesalways attach great importance to the credit risk. Banks emphasize the credit ratings ofmoney-borrowing enterprises, so some factors such as financial condition, enterprise scale,operation and management ability and so on are important. Unlike the traditional financingmode, SCF focus on the authenticity of the trade background, the relation between upstreamand downstream enterprises, the reputation and size of core enterprise, core enterprise’soperating capability of the supply chain. The credit risk is huge for traditional financingmodes. But SCF can transfer part of credit risk to the operation risk. Because it is not so longsince SCF rise in our country, the idea of SCF and its risk control have not been formed, so itis high time for banks in our country to explore a healthy development road of SCF.Because the operating characteristics, means of exchange and capital turnover ofdifferent industries are various, so banks should analyze different supply chains’ features anddesign Supply Chain Financial Modes which can adapt to relevant industry well. In recentyears, the automobile industry in our country is developing very rapidly, this thesis will takethe Automobile Supply Chain Financial Mode of H bank as the main object of analysis. Itanalyses the business process of H bank’s Automobile Supply Chain Financial Mode, itsearnings and risks in detail, so as to offer some help to H bank about the future developmentof this mode and provide certain reference for other commercial banks on developing SCF.