A Case Study On Supply Chain Finance Of Bank Of Yingkou

In our country, small and micro-sized enterprises include small enterprises, micro- sized enterprises, enterprises managed by a family, individuals who use their own property to manage a business. In china, the number of small and micro-sized enterprises is so large that they have become an important pillar of the national economy. Small and micro-sized enterprises have made a great contribution in promoting employment and they are the main bearer of social employment. Therefore, small and micro-sized enterprises have a very important position in China’s national economy and social development. Supporting the development of small and micro-sized enterprises means that it could play a bigger role in solving the problems of people’s livelihood and promoting the growth of the economy. However, for a long time, lack of funds restricts the development of small and micro-sized enterprises. It has become the biggest bottleneck that small and micro-sized enterprises have difficulties in financing or the financing rate is so high, which is the cause that small and micro-sized enterprises could not play a greater role in promoting the development of economy and the growth of society. Therefore, it is necessary to find the way to solve the financing problem of small and micro-sized enterprises. At present, there are many solutions to solve the problem. And one of them is supply chain finance. The so-called financial supply chain, from the perspective of commercial bank, is a credit business that the bank provides flexible finance products and service for the core enterprise and its upstream and downstream enterprises through investigating the whole supply chain and mastering the management degree of supply chain and the core enterprise’s credit strength. Supply chain finance has become one of the effective ways to solve the financing problem of small and micro-sized enterprises based on the advantages of reducing the credit conditions, expanding the range of collateral and reducing the transaction cost of commercial banks.This paper studies the operation of supply chain finance of bank of Yingkou through using case analysis method. It compares the traditional governance structure of loan business of commercial banks with the governance structure of supply chain finance of bank of Yingkou, based on transaction cost theory. In the end, it makes a conclusion that why the business is successful and supply chain finance makes it feasible to provide funds for small and micro-sized enterprises by changing the traditional governance structure and reducing transaction costs. At the same time, the case provides a new idea to offer funds to small and micro-sized enterprises for commercial banks, especially for city commercial banks, which has very important reference and promotion significance.This paper is divided into four chapters based on the operation of supply chain finance of bank of Yingkou and the reason why the case is successful. The first chapter is introduction. It describes the research background and research significance. It classifies the materials about supply chain finance model and introduces the idea, the content and the structure of this paper. The second chapter is case introduction. It introduces the operation process and the characteristics of supply chain finance business of the bank of Yingkou, and gives a specific example, and the good results the business has achieved. The third chapter is the case analysis, which analyses the reason why the case achieves good results. In this chapter, it introduces the theoretical tools used in the paper-- the theory of transaction cost firstly, which lays a theoretical foundation for the following analysis. Then it compares the traditional governance structure and the governance structure of supply chain finance of bank of Yingkou from the perspective of transaction government, which points out the advantage of governance structure in the supply chain finance business of the bank of Yingkou in reducing transaction cost and reveals the reason why the case is successful. The fourth chapter is conclusion and suggestion. In the conclusion part, it points out that the reason why the case is successful is that the case reduces transaction cost by creating a new governance structure. As long as the suitable governance structure is built, commercial banks could offer funds to small and micro-sized enterprises by using kinds of innovative ways including supply chain finance. In the suggestion part, it suggests that commercial banks need to focus on the problem of the selection of the core enterprise in supply chain and the stability in the supply chain.