On The Risk Control Of Bank A’s Supply Chain Finance

The rise of supply chain financ e provi des sma ll and medium enterprises with new finance channels, and also offers commercia l banks a new way to making profits in China.With the dee pening of mar ket-oriented interest rate r eform, suppl y chain finance becomes the main measure for commercial banks to r eform and innovate. In r ecent years, China’s s upply chain finance business has been developed rapidly and the size has bee n expande d drama tically. In this context, how t o coordinate the re lat ionship between the developme nt and stability, in orde r to have bett er cont rol of the supply chain financial r isk, is of extremel y pract ical significance.From the mic ro-perspect ive, this paper discuss es the pr actical problems fac ed i n the s upply chain finance developme nt from the practical poi nt of view of Bank A. Based on the related theories of supply chain fi nance and its risk control, the paper uses the Logit model to calculate Bank A’ s financi al ri sk control ability and its effectivenes s through questi onnaire survey. The result shows t hat t here are some weaknesses and improvement cha nces for Bank A’s risk control capac ity of supply chain finance. Aft er analyzing t he ca uses of the wea knesses, the paper puts for war d countermeasures and suggestions for Bank A on how to enforce its supply cha in finance risk prevention and control. Finally, the pape r reviews and summarizes the ma in ideas of the research, and points out the res earch limit ati ons and further directions worthy of research.A quantitative analysis of thi s paper shows that Bank A has a good c ontrol on the credit risks and market ri sks of supply chain finance, while wea k in operational risk controls. Operational risk cont rol has bec ome a weakness of Bank A’s supply chain financial risk c ontrol. Further analysi s finds that there are six reasons for the we akness: the related laws and regulations sys tem is not perfect in China; the social credit system is poor to suppor t; Bank A’s inter nal control system design and arrangement cannot meet the needs of supply chain finance ope rational risk control; r isk identifica tion and eval uati on method s hould be furt her optimize d; human resource management and configuration cannot meet the needs too; and the “thre e check requirements” for the loans are not strictly impleme nted, e tc. Therefore, i n order to improve and enhance the ri sk prevention and control ca pacity of supply chain finance, Bank A nee ds to fil l the legal gap, strengthen information construction, optimize the i nternal control system, improve the capacity of human resources management, establish scientific evaluation approaches and stric tly control key businesses and product r is ks.