Study On Supply Chain Financing Management Of PA Bank

Against the background of implementation of The Basel III Accord and the strengthening of supervision and capital constrains by Chinese regulatory authorities on the banking industry,financial innovation through legal channels becomes increasingly crucial for banks and the reforming orientation should concentrate on raising profit proportion of the intermediate business using less or no capital.According to the relevant provisions of the Basel Accord,trade finance projects only take 20% of the general credit business,due to its low capital-consuming feature.It surly alleviates the difficulty of endogenous capital and relives the pressures of replenishing capital for commercial banks.Hence,Supply chain financing is bound to become the emphasis of development for banks in the future.A good supply chain financing model could provide a good solution for small and medium-sized enterprises financing in the upstream and downstream supply chain.At present,small and medium-sized enterprise play important roles in Chinese economic development.However,due to the defection of domestic financial support system,the majority of small and medium-sized enterprises have difficulties in financing.To solve this problem effectively,this paper built the supply chain financing model.It is also valid to risk aversion to a certain extent,achieving a win-win situation for bank and companies.Supply chain financial products are introduced with the basic theory of relevant financing management.This paper analyzes the supply chain financing management of PA Bank(original S Bank)and focuses on the risk management of supply-chain financing.Integrated with knowledge of risk control,this thesis has explored that how joint-stock commercial banks could reduce rick with supply-chain financing in the complicated economic condition,and has provided suggestion to managers that banks could rapidly develop and effectively avoid risk through transformation and innovative products.The background and meaning of this research are elaborated in the first chapter and the second one explains theory and products of supply chain financing.Then it introduces development of PA Bank and its supply chain financing.The forth chapter analyses the risk in three different business pattern in supply chain financing on the basis of the risk evaluation and typical cases,and also implements SWOT analysis between PA Bank supply-chain financing and traditional financing.Finally,measures and suggestions for supply chain financing risk management if commercial banks are presented.