Commercial Bank Supply Chain Finance Operations Research

Financial strain, which is caused by credit deficiency and the collateral requirements missing of guarantees, almost become a common problem faced by various SMEs. Meanwhile, foreign commercial banks have settled in the Chinese market under the guidance of economic globalization and integration, and the competition of domestic commercial banks heats up. In that way, only by cultivating local strengths, innovatively thinking and accelerating business restructuring, could the domestic commercial banks survive in the fierce competition. The generation of supply chain finance is a major innovation and adjustment for commercial banks in the business field and it can bring considerable benefits under the premise of risk control. Therefore, supply chain finance has progressively developed, and it plays an increasingly important role in the national economic development.Supply chain finance is a financing activity which using financial instruments to produce value-added logistics in the supply chain. For commercial banks, supply chain finance is a innovative business model to meet the needs of enterprises’supply chain management and its objective is to achieve a win-win cooperation between the core enterprises, upstream and downstream enterprises, third-party logistics companies and banks; For SMEs, supply chain finance is a new solution to its financing problems. In recent years, with the growing development of SMEs and constraints of traditional credit business model in domestic commercial banks, supply chain finance with its "self-liquidating trade finance" features, has become "land of treasure" for commercial banks.Supply chain finance business, on one hand, can solve the problem of financing for SMEs, on the other hand it brings low-risk, high-yield new model of business development for commercial banks, and it plays a positive role in promotion of SMEs and healthy development of commercial banks. The study of supply chain finance can help commercial banks actively develop their business, effectively prevent risk and enhance market competitiveness.At present, domestic and foreign research of supply chain financial services focuses on product system, risk control, legal constraints, and technology platforms. While in this business area, domestic commercial banks start late in the development process and also encounter many common problems, such as simple product system, imperfect risk control process, and low electronic level.First of all, this study will review some literature and theories about supply chain finance. Then it will carry out a detailed analysis in the state-of-the-art of the supply chain finance in China and abroad. Thirdly, it will conduct a detailed discussion of China Merchants Bank and Standard Chartered Bank to find the similarities and differences between them in the development of supply chain finance. Finally it will put forward some existed problems and solutions for domestic commercial banks in the development of supply chain finance business.