Study On The Risk Management Strategies Of Warehouse Receipt Pledge

In recent years, with the continuous development of the logistics industry inChina, the industry competition is more and more intense and profit margins arebeing constantly compressed. As a result, developing new sources of profit hasbecome a headache problem for the current logistics enterprises. The shortage offunds is becoming increasingly prominent with the continuous development of smalland medium enterprises. Its financing problem has become a short board to thecontinuous development of small and medium enterprises. With the rise of Internetbanking and the promotion of market-oriented interest rate, the banking industry isfacing enormous challenges, and difficulties in lending will be further enlarged.Logistics finance is come into being in such an environment. It can not only bringlogistics companies new profit growth point but also solve the financing difficultiesand the lending problem of small and medium enterprises. Therefore, as an emergingbusiness, logistics finance is highly concerned by Logistics business, small andmedium enterprises and banks.Warehouse receipt pledge business is one of the main operations of logisticsfinancial. In the warehouse receipt pledge business, the logistics enterprises can getdouble rewards from storage charges and regulatory fees; the small and mediumenterprises ease the financial pressure and the banks find a new way of lending,forming the tripartite win-win situation. In recent years, the business is highlyrespected in China. Income comes with risk, so does the warehouse receipt pledgebusiness. In China, Warehouse receipt pledge business is still in its infancy, so thereare a lot of risks. The smooth of the warehouse receipt pledge business must beguaranteed by good risk regulatory control, therefore, monitoring the risk of thewarehouse receipt pledge is very important.From logistics finance related theory, this paper first introduces the commonmode of logistics financial business, warehouse receipt pledge model and itsoperation process, risk management basic concept and basic procedures. Secondly, inthis paper, the risk of the warehouse receipt pledge is sorted and the risk evaluationindex system is established, using yaahp V6.0analytic hierarchy process software to evaluates all kinds of risk factors. It is concluded that the main risks of the bank is thepledge enterprise’s credit risk and pledge financing risk, but the main risks oflogistics enterprises is operation risk. Then, this paper respectively analyzes thewarehouse receipt pledge risk regulatory strategy for banks and logistics enterprises,and shows the corresponding risk strategies. Finally, this article embarks from theprice of the pledge, and introduces the determination of the pledge rate eventually bycalculating yields, volatility, VaR. Taking rebar warehouse receipt pledge forexample, it conducts the empirical study on the pledge rate, providing a reference forbanks which set the pledge rate according to its own risk preferences. This paperprovides certain theoretical basis and practice guidance for the risk management ofwarehouse receipt pledge business and has a certain significance.