Research On The Application Of Commercial Bank's Supply Chain Finance Model

General Secretary Xi Jinping pointed out that finance should depart from and settle on real economy service.How do banks effectively serve real economy and solve the financing difficulties of small-medium enterprises? This requires banks to alter their original “bank-enterprise” business mode and make possible of the “Internet + bank+ core leading enterprises + upstream and downstream distributors on supply chain” mode.Supply chain finance(SCF)is born under this background.It is a financing service provided by banks for large core enterprises and related upstream and downstream small-medium enterprises on supply chain.It aims at promoting the high-degree integration of logistics,information flow,and capital flow,realizing the smooth running of “supply-production-sale” of large core enterprises and related upstream and downstream small-medium ones on supply chain,enhancing the core competitiveness of the enterprises on the whole supply chain,and achieving tripartite win-win.This research consists of five sections.Section 1 discusses the background,significance,contents,and methods of this research and summarizes the research status of existing researches in China and at abroad on the mode,optimization,and risk control of commercial bank's SCF;Section 2 is a theoretical overview,including a review to the emergence and evolution of SCF,an introduction to the system and financing characteristics of SCF from the perspective of SCF participants,a comparison of different SCF modes dominated by logistics enterprises,core enterprises,and commercial banks,as well as a brief introduction to the main theories involved in SCF;in Section 3,a case is employed,namely,Bank A issues loans to the upstream and downstream customer clusters of a core enterprise(noted as Group M)relying on this core enterprise,to analyze the operation idea,business products,credit management,data acquisition and analysis,and risk prevention and control of this mode;Section 4 analyzes the participating necessity of the subjects on supply chain and the feasibility of the mode based on the case.In addition,the advantages and limitations of this mode are emphatically analyzed;Section 5 concludes the research and proposed optimization measures on basis of the conclusion.The SCF product of Bank A investigated in this study,namely,“data net loan”,has been successfully applied to the supply chains dominated by several core enterprises,such as BYD Company and Group M.This mode offers a new way for small-medium enterprises solving the plights in conventional loan,such as the difficulties of access,examination and approval,and guarantee.Meanwhile,it opens a credit-focused,guarantee-less focused,and unsecured inclusive financial service mode for small-micro enterprises;this mode,highlighting the “self-finance” experience of customers,allows loan to be entirely handled online through simple business operation flow.Customers can borrow or pay loans indoors,greatly improving the loan efficiency.Previously,it takes a month to get a loan,now,merely a few minutes online;the mode,with flexible loan terms,allowed loans to be borrowed or paid whenever necessary.Prepayment is also operable by customers online,without need of reservation,application,or field investigations.Loans can be paid or borrowed whenever enterprises earn or need money,effectively reducing the financing costs of small-micro enterprises.Unfortunately,the extensive promotion of this mode encounters difficulty in signing the “tripartite agreement” among core enterprises,banks,and small-medium enterprises.Core enterprises' disagreement is sourced from that many core enterprises prefer to the financing business of upstream customers relying on their powerful market positions.How do banks solve this problem? This requires banks to exploit application blockchain technology,which can produce data blocks in the distributed peer-to-peer network without central control points.By decentralization and getting rid of the “tripartite agreement” of core enterprise,the SCF of commercial banks can be popularized.