Research On Risk Management Of Supply Chain Finance Business Of Commercial Banks

In recent years, small and medium-sized enterprises is playing an increasingly important role in promoting China's economic development.According to related statistics, in 2014 about sixty percent of GDP in China is contributed by small and medium-size enterprises and these enterprises also provides nearly 80% of jobs in cities and towns. The steady development of small and medium-sized enterprises will be an important foundation for China's economy continues to maintain a steady and rapid growth, but at present some problems forced the small and medium-sized enterprise has slowed the pace of development, the prominent of which is funds shortage. Due to its small production scale, weak anti-risk ability, lack of stable cash flow and other reasons, it is difficult for small and medium-sized enterprises to obtain sufficient funds through banks to support their development, but the supply chain finance provides a new way to solve this problem. In the supply chain finance business of the bank, Due to the core enterprise provide some credit support for small and medium-sized enterprises, the small and medium-sized enterprises can get more money through bank, so that they can quickly out of the plight of a shortage of funds. Along with the development of small and medium-sized enterprises, supply chain finance business will be growing at a rapid speed.For commercial banks, the supply side reforms means create more to meet customer's demand for personalized financial products. Supply chain finance is important innovation in the supply side reform of banks. In recent years, with the speeding up of interest rate marketization, the commercial bank interest rate differentials are narrowed and the traditional profit model is difficult to maintain, so commercial banks must strengthen financial innovation to improve their core competitiveness. Supply chain finance can help banks to get more customers of small and medium-sized enterprises and improve intermediary business income, so there are more and more commercial banks began to develop supply chain finance business. In February 2016, the central bank in combination with other government departments introduced an administrative document to promote the development of supply chain finance. Good policy promotes the development of supply chain finance business in banks. However, there are many banks only see the benefits brought by the development of the supply chain finance, and neglecting the risk of supply chain finance business.Firstly, this paper introduces the development of the supply chain finance business in banks, and then this paper introduces the risk management of supply chain finance. At the same time, on the basis of introducing the research content and research methods, writer points out the innovation points and deficiencies of this paper. In next part, this paper introduces the definition and the characteristics of supply chain finance business, the financing mode and development status are also described in this part. On the basis of this, the risk of supply chain finance is analyzed. Next, this paper analyzes the risks of the three main financing models.And the risk prevention measures are given according to the cause of the formation of the risk. Three cases about the main financing model' risk management issues are described in detail to help us understanding the risk management of supply chain finance. At last, this paper analyzes the problems in the risk management of the supply chain finance business and put forward some proposals for these problems.This paper is divided into six parts. The first part mainly expounds the research background and significance, research content and methods, and points out the innovation points and deficiencies of this paper. The second part mainly expounds the meaning, characteristics, financing mode and development status of the supply chain finance business. The third part analyzes the main risks of the supply chain finance business. In the fourth part, the risk management of supply chain finance is explained with three different cases. In the fifth part, the paper mainly expounds the problems in the risk management of the supply chain finance business and some suggestions to solve these problems. The sixth part is a brief summary of the full text. All in all, I hope this article can help commercial banks to further improve the risk management of supply chain finance business. In this paper, the risk management of supply chain finance business is studied with the related cases, and I hope to provide some reference for the risk management of supply chain financial services.