Study Of Supply Chain Finance Of Minsheng Bank Branch A

The extent of economic integration is being increased in the modern world, and the competition of enterprises becomes increasingly sophisticated and diversified and involves the entire supply chain system especially the upstream and downstream of logistics. As a new form of commercial banking service, the supply chain finance business is an increasing concern with the great momentum and potential.Minsheng Bank branch A is taken as the main object of study in this paper, with three financing modes of supply chain finance, i.e. the prepayment, inventory and accounts receivable being analyzed to derive the advantages, disadvantages and applicable conditions. The various problems confronting the development of supply chain finance business and their causes are deeply analyzed and the suggestions for Minsheng Bank to improve the supply chain finance business may be proposed on the basis of foreign and domestic researches and related theories. Not only will Minsheng Bank, but also other domestic commercial banks will benefit from the study in this paper. The study herein is composed of the following seven specific areas:1. The background, purpose and meaning of the study:In this section, the supply chain finance is described as a unique business financing mode which relies on the industry supply chain to provide the comprehensive financial services to the individual enterprise or multiple upstream and downstream enterprises, so as to stabilize and facilitate the production, supply and sales of the core enterprises in the supply chain and the upstream and downstream supporting enterprises, reduce the total operating costs of the entire supply chain and develop an industrial ecology through the cooperation of financial capital and industrial economy. As a new financing and industrial organization mode, the supply chain finance really matters for the development of enterprises and banks.2. Literature review:The foreign and domestic literatures about the supply chain finance may be summarized into the following points:first, as an important form of financial innovation, supply chain finance can create a win-win situation and may be easily accepted by enterprises. Therefore, the commercial banks shall actively promote the supply chain finance business to seize the market and enhance the competitiveness; second, supply chain finance business can effectively broaden the financing channels for SMEs. Therefore, SMEs can seek financing through the supply chain finance to overcome the difficulties in financing. Third, the theoretical study of supply chain finance in China is still in the stage of drawing on the foreign successful experiences, and it is necessary for our scholars to constantly enrich the theories of the supply chain finance by incorporating the actual conditions confronting our enterprises in the development of supply chain finance.3. Basic theories of supply chain finance:In this section, it is elaborated that the supply chain finance is to find a large core enterprise in the supply chain and provide the financial support for the node enterprises with the core enterprise as the starting point. On the one hand, the capital is effectively injected into the relatively weak upstream and downstream supporting SMEs to solve the problems such as the financing difficulties, imbalance of supply chain, etc.; on the other hand, the credit of banks or financial institutions is integrated into the selling and buying activities of upstream and downstream enterprises to improve its commercial credit, promote the establishment of long-term strategic cooperative relations between the supporting and core enterprises, so as to enhance the competitiveness of the entire supply chain.4. Three categories of supply chain finance business:Supply chain finance business may be divided into three categories, i.e. the prepayment, inventory and accounts receivable of which the prepayment includes the differential repurchase and stage guarantee, inventory includes the non-standard warehouse receipt pledge, standard warehouse receipt pledge and movables pledge, and accounts receivable consists of accounts receivable pledge. The theoretical knowledge of various products, product features, business processes, risks, etc. are detailed in this paper and the application conditions, advantages and disadvantages, etc. are also compared for three categories of financing modes.5. Implementing problems of supply chain finance business, causes analysis and countermeasures:Despite the fact that the moral risks of credit receiving for SMEs may be considerably reduced by the supply chain finance, some of the potential risks in the operation shall not be ignored due to the weak resistance of SMEs in the supply chain financing against the market risks, a large number of participants in the supply chain and possible reference to the different industries and technical field.6. Case analysis:Through the analysis for two cases, it is found that supply chain financing is much advantageous in relation to the traditional financing mode. As the major development modes of supply chain finance, manufacturer-dealer-bank mode and movables pledge play an important role in promoting the development of enterprise financing, etc.7. Major conclusions, shortcomings and outlook:The study content of full text is summarized to present the conclusions that the supply chain finance business is advantageous in relation to the traditional financing mode, and creates a win-win situation between banks and enterprises, thus effectively dispersing the financing risks, improving the bank earnings and reducing the financing costs. In this paper, the problems in the implementation of supply chain finance and their causes as well as the improvements, etc. are evolved; the shortcomings of this paper and the problems to be solved by the follow-up study are also analyzed.