The Risk Control Of Bank Based On Supply Chain Financing

With the changes in pattern of market competition, improving the competitiveness of the whole supply chain has become a top priority of contemporary business.At the same time,the development of the supply chain brings new opportunities for SME, but the financing problem of SME seriously hindered the the sustainable development of SME.The commercial banks are in the period of financial reform.They are facing increasingly fierce market competition.The bank adjusts to the structure of the customer and develops the SME market are imminent.It provides a breeding ground for the breeding of the supply chain financing.Supply chain financing services to the real economy.The cooperation between bank and business forms a win-win situation.Supply chain financing brings benefits and risks to every participant. Supply chain financing is different from the model of traditional financing.The characteristics of its risk is complex, expand, transmission and so on.So the bank should be established independent the risk control system of supply chain financing,which is related to the ability to obtain the entire supply’s performance.Also it is the key to improve the major competitiveness of the bank.This paper reviews the study course at three aspects(connotation,model and risk control) of supply chain financing. on this basis, to study the content, features and development status of the supply chain financing and its risk control.Second,due to Chinese steel industry doesn’t have alternatives.And the steel industry has high degree related with its upstream and downstream industries.So they constitute a clear supply chain,namely raw material-production-sales relationship is clear and close.The supply chain of steel industry is relatively mature.Also the steel industry is one of the main target,that the bank developing supply chain financing.Therefor taking the steel industry as an example,to study banks carry out the supply chain financing in this industry.To select several products of the supply chain financing are widely used by Chinese steel industry.Namely factoring,confirming storage financing, financingstorehouse and several product portfolios of supply chain financing.This paper introduces business processes and risk control points of these operations.Then analyzes factors of Chinese steel industry’s supply chain financing. Because the factoring,confirming storage financing, financing storehouse are belong to accounts receivable financing, prepayments financing and inventory financing.If we can analyze the risk control points of this three products of supply chain financing,it can be summed up similarities and differences in the risk control points of accounts receivable financing, prepayments financing and inventory financing.It can direct banks establish independent the risk control system of supply chain financing.Finally,we suggest that the bank should start from management concepts,internal management system, before loan, make loans, and after loan to establish independent the risk control system of supply chain financing.