The Forest Right Mortgage Business Model And Optimization Of Bank H

As Chinese third forest right system reform accomplished in 2003, forest right system got clearer and relative laws and regulations had been established, which brought unprecedented opportunities to forestry economic development. More and more entrepreneurs,original farmersand even ordinary people involved in the industry development of forest to try and create more economic value. Relative to other industries, however, forestry industry has its own particularities, such as long development cycle, slow implementation of benefit, large amount of money demand, easily affected by the natural environment and so on. All of the particularities make it less possible for the forestry enterprises to get loans from commercial banks than other industry enterprises. Insufficient funds restrict the development of forestry enterprises. How to support the forestry enterprises by offering loans under the control of current laws and internal management system gradually become the hot topics in the study of commercial banks.BankH is an unlisted joint-stock commercial bank. In the face of increasingly fierce market competition, bank H will focus on the development of forestry enterprises credit business and regard it as a characteristic business. With the accomplishment of third forest right system reform, forest right mortgage, as a novel credit product of bank H, provides development funds for some forest enterprises.After business pilot, bank H found that there are some constraints, including long operating cycle, imperfect management system of forest right mortgage, unsound evaluation system and difficult disposal of collateral, which made the single guarantee way cannot meet the collateral requirement of bank H. Therefore, it has important and practical senses to research on optimizing forest right mortgage models and selecting for different customers, which may support the development of forestry enterprises.By field investigation of forest right mortgage business in bank H, in this paper, the problems of forest right mortgage has carried on the analysis, and combined with the advanced experience of other credit products development, I put forward the bank H forest right mortgage business model optimization strategy. Firstly, this paper introduces the present situation of forest right mortgage of bank H by presenting its management mode and business process and analyzing the potential problems. Secondly, this paper discusses the principles and ideas of forest right mortgage business mode optimization, and designs some Optimization schemes. Thirdly, this paper discusses how to guarantee the implementation of these schemes by analyzing the desired effects of the schemes, then put forward some improved schemes for bank H.In the future, the demands of Chinese forestry enterprises will still be very strong. It is a guarantee of the sustainable development that keeps optimizing the forest right mortgage business models. This article from the perspective of practice, through the study of forest right mortgage mode, to create new momentum of banks H by promoting its competitiveness.