Research On The Risk Control Of Supply Chain Finance Of Postal Savings Bank Of China LY Branch

The economic vigor and competitiveness of a country needs “indomitable” bigenterprises, but it also needs “widespread” small and medium-sized enterprises. Small andmedium-sized enterprises are the foundation of Chinese economic development. To assist thedevelopment of small and medium-sized enterprises is the bounden duty for the PostalSavings Bank of China, a modern large-scale retail commercial bank with the mostcomprehensive coverage of network. It is also an important component in practicingInclusive Finance. Since30years of reform and opening up, small and medium-sizedenterprises have been developing rapidly in China. However, they have been puzzled bydifficulties in financing. The characteristics of small and medium-sized enterprises make itdifficult to get traditional credit aid from financial institutions. Small and medium-sizedenterprises are born to provide services for big core enterprises. They form chaindevelopment together with big enterprises and thus become industrial supply chain. In orderto promote the development of small and medium-sized enterprises which are at adisadvantage in the industrial supply chain, the supply chain finance business is born,providing special financial services for chain enterprises.The loan project of supply chain finance is an important part in credit business strategyfor Postal Savings Bank of China, because it is significantly important in expanding thescope of services, optimizing revenue structure, promoting business transformation anddriving capacity building. Business development and risk control are eternal themes forenterprises. Exercising risk control is to promote business development.Combining theories and case analysis, this thesis is to analyze the risk control work ofsupply chain finance business in Postal Savings Bank of China LY Branch from theperspective of Postal Savings Bank of China LY Branch needing to exercise risk control insupply chain finance business. Chapter One and Two introduce research background, themain research contents and status, focusing on the recent development, business process,risks and their causes in supply chain finance business and also the problems existing in riskcontrol in Postal Savings Bank of China LY Branch. Chapter Three discusses the necessityand the main contents in building risk control system for supply chain finance in Postal Savings Bank of China LY Branch. Chapter Four analyzes with cases the risk controlsituations of supply chain finance in Postal Savings Bank of China LY Branch. Chapter Fiveis conclusion and expectation, giving advice on safeguard measures on building risk controlsystem for supply chain finance in Postal Savings Bank of China LY Branch from bothinternal and external environments.With theoretical elaboration and case analysis, this thesis argues that the new supplychain finance business of Postal Savings Bank of China LY Branch has room fordevelopment from the perspective of risk control although it faces many risks. The risks canbe avoided by optimizing business process, strengthening the implementation of the rulesand regulations and improving admittance criterion of core enterprises. Risk control can beeffective by such measures as reducing operation errors, enhancing compliance awareness ofthe credit staff, strengthening the construction of information system and establishingincentive mechanism.