Research Of Commercial Bank Supply Chain Financing And Risk Control

With the development of social economy, medium and small-sized enterprises play a more important role in economy. The commercial banks won’t offer financing business for medium and small-sized enterprises because their lack of strength, clear financial situation and high credit grade. So far the traditional financing credit business of commercial banks can’t solve these enterprises’ difficulty in financing. The commercial banks usually offer financing service for some large enterprises which have good credit standing. How to solve medium and small-sized enterprises’ difficulty in financing becomes a critical problem. As a new financing pattern of the commercial banks, supply chain financing provides a new financing channel for medium and small-sized enterprises. In this pattern, banks focus not only on a certain enterprise’s credit standing and financial situation, but more on the real trade relations between these enterprises which are on the chain. In order to improve the credit grade of medium and small-sized enterprises, banks put them and the core enterprises together in credit tied. After the verification of supply chain relations, banks offer financing credit business for medium and small-sized enterprises.This article is divided into six parts. The first part is introduction; the second part is the theoretical basis of this article; the third part is the description of supply chain financing’s present situation; the forth part is the case analysis of XY bank’s customer-X company’s solution of supply chain financing; the fifth part is the advice for banks’ service of supply chain financing; the last part is the conclusion and expectation.This article use case study method and literature survey to do some research on the business of supply chain financing. By studying this article, we can get the below conclusions: First, Supply chain financing can provide a new financing method for medium and small-sized enterprises. Second, Supply chain financing can offer a new financing pattern for bank which can provide new ideas in creating new financing products. In the meanwhile, in the process of supply chain financing, banks need to make risk management to ensure a good development of financing business.