A Research About The Development Of CS Bank's Supply Chain Finance

The basic characteristics of current financial market are displayed by economic globalization,an intense market competition,more customized services and a complicated enterprise processes.The key factor of enterprise competition is supply chains,rather than it explained by market share,customer maintenance,the internal company management.Supply chain finance as an emerging financial business of domestic and overseas commercial Banks,which linked the logistics with financial and established a relation between commercial capital and financial capital.Additionally,it improves the efficiency of using financial capital and solves the problem of financing difficulties suffered by mid-and-small enterprises.Thus,it could boost the development of national economy.However,our domestic commercial bank are facing some challenges,such as how to build an orderly financial system,coordinating the relationship between supply chain members and making the them work together.Also,the operating costs of supply chain should be reduced and the fund utilizing efficiency should be improved.Therefore,it is of great significance to research the current development of the supply chain finance in commercial banks and then discover and solve the problems arising from the supply chain finance.This essay introduced the basic theories of supply chain finance based on four points of view which are concept,advantages and composition,major modes and theoretical basis.The advantage of supply chain finance mainly includes that could enhance the level of banking financial services more effectively,achieve a win-win situation and then solve the problem of financing difficulties of mid-and-small enterprises.The main modes of supply chain finance are constituted by the accounts receivable financing,inventory financing and advance payment financing.The theoretical basis of supply chain finance involves information asymmetry theory,self-liquidating trade finance and principal-agent theory.This essay also take the CS bank as a case to analyze the motivation of developing supply chain finance in commercial banks.In addition,it also shows the current development of supply chain finance business in the CS bank based on the development situation,the type of business,the characteristics of customers and the risk management.On this basis,essay summarized that the problems of the CS bank occurred in the process of developing their supply chain finance business.This essay argues that the BS Bank suffered a lack of perfect credit evaluation system and loan approval process is too long regarding to operation management.In term of the information management,there is a problem of low levels information with the CS bank.In the risk management aspect,the CS bank risk faced a limited risk control measurement and a imperfect risk control system.In terms of financing product design,there is a lack of flexibility and diversity on CS Bank's exist products and a slow market response;In terms of market impact,it is difficult for the CS bank to maintain their big customers' relationship maintenance difficulties.Also,they should develop mid-and-small enterprise customers and focus more on "globalization" business.Furthermore,this essay provides some solutions and suggestions to solve and improve those the current situations.The essay also provides theoretical support and practical guidance to other commercial Banks which aimed to develop their supply chain finance.Finally,the study summarizes the deficiencies,so as to lay a foundation for the other scholar's research in the future,enrich the research of commercial bank supply chain finance.