The Legal Risk And Prevention Of Commercial Bank's Supply Chain Business

The public seems to believe that financial development is the game of “the rich”.In fact,the fundamental pursuit of financial development,or one of the pursuit is to reduce the mortgage requirements of financing,so that “the poor”,those have good development prospect,but now there is no enough real asset,can also get bank's support.Therefore commercial bank supply chain finance service emerged,which is based on the credit of core enterprises in the supply chain,and controls logistics,information flow and capital flow through production,supply and distribution to provide comprehensive financial services for SEMs.Its biggest characteristic is that commercial banks no longer blindly pursue real estate and other high-value assets as a loan request,instead of paying attention to the changes in the supply chain,and designing financing products according to facts.This new financial innovation product can effectively solve financing problems of SEMs.At present,commercial banks carry out some supply chain finance services,which mainly include but not limited chattel mortgage financing and accounts receivable financing models,while the two financing modelsare still in infancy.In addition,because of inherent credit thinking,while ignoring legal risk and prevention for supply chain financial services.Therefore,in practice,there are some cases of corporate default,that cause the rights of bank cannot be realized and huge property damage.Consequently,it is of great practical value to analyze the legal risks of the two financing models.In addition to the introduction,this article is divided into four chapters.Based on “Property Law”,“Guarantee Law” and the Interpretation of Guarantee Law,the author mainly discusses the definition of commercial banks supply chain financial services and legal risk and prevention of two models(chattel mortgage financing and accounts receivable financing).It is not difficult to sum up the definition: First,the commercial banks are the lenders of financing;Second,SEMs in supply chain are the borrowers;Third,the borrowers-banks use their chattel or accounts receivable as a pledge of the loan;Fourth,the core enterprises in supply chain bear the credit guarantee.In the discussion of commercial banks supply chain financial services,the author focuses on the legal risk of the two models in financing due to the lack of legal system.Finally,the author elaborates how to prevent the legal risk and gives the institutional suggestions corresponding to the two financing models.Chapter 1: Overview of commercial banks supply chain financial services.This paper begins with the definition,and then introduces the supply chain financial services of commercial banks from the aspects of characteristics,supply chain operation subject and business financing mode,and the basic facts of three supply chain financial cases.Next,it analyzes the current legal regulation of supply chain financial services in our country,and lays the basic theoretical background for the following discussion.Chapter 2: Legal risk of chattel mortgage about commercial banks supply chain finance.Firstly,describing the operation mechanism of this model and its basic characteristics.Then,in the context of the above cases,exploring the reasons for legal risk when banks carry out chattel mortgage for financing in practice.Finally,analyzing the legal risk in detail in the light of the problems reflected in the cases.Chapter 3: Legal risk of accounts receivable about commercial banks supply chain finance.Firstly,expounding the operation mechanism of this model and characteristics.Then,also in the context of the above cases,analyzing the reason of legal risk in the process of accounts receivable pledge.Finally,combining with the cases,analyzing the legal risk of accounts receivable pledge.Chapter 4: Countermeasures to prevent the legal risk of commercial banks supply chain financial services.This chapter is divided into two sections,which make recommendations to improve the system corresponding to the previous two specific business models.These recommendations,mainly from the perspective of constructing chattel security system,draw on the relevant system design of chapter 9 of the Uniform Commercial Code of the United States,aiming at promoting the reform of China's chattel security system.Then,with a view to the better development of China's supply chain finance,the paper puts forward the corresponding suggestions on the reconstruction of accounts receivable pledge's legal system for commercial banks supply chain finance.