Research On Commercial Bill Defaults Of Financial Companies In China

The bill market is an important part of the financial market and has played an extremely important role in promoting my country's economic development and financial reform.Bills are a widely used payment and settlement tool among enterprises.They also have financing functions and are an important source of profit for financial institutions such as commercial banks.Therefore,in recent years,the bill business has developed rapidly,the bill market infrastructure has been gradually built and improved,and bill products have also increased.This has also made financial institutions more competitive,and it has also brought many risks.The increase in the scale of the bill business puts higher demands on the bill management level of financial institutions.Once the bill management system is flawed,it is prone to risk events and economic losses.At present,my country's research on credit risk in the field of bills is still immature and lacks an effective risk prevention system.Bills operating institutions need to strengthen the management of bill business as soon as possible to prevent and control credit risks.Finance companies are non-bank financial institutions serving groups and member units.Large groups in all important areas of our country have almost set up finance companies to achieve capital concentration and management.As the scale of finance companies continues to grow,they are in the financial system.The role of the company has also gradually improved,and it has become another emerging force in the market besides financial institutions such as securities and banks.At present,the bill business is also a core business of finance companies,and is a common payment and settlement tool among enterprises.With the development of the group,the scale of bills has also become larger.The difficulty of bill management of finance companies has increased,but the development of bill business of finance companies Unlike commercial banks,there is also a gap in bill management,and there are differences in relevant regulatory requirements.At the same time,the development of the financial company's bill business is closely related to the group's operation,and the bill transaction objects cover many enterprises in the industrial chain.Therefore,the bill management of the financial company is very important to the group.For a long time,the risk of bill business has been low.Therefore,financial institutions have not paid enough attention to the management of bill business,which directly increased the risk of bill business.In 2018,the amount of money involved in the bill fraud case of the Pagoda Petrochemical Group Finance Company was huge,which caused a great negative impact and exposed some of the current problems in the development of the bill business of the finance company.Therefore,this paper takes the bill redemption crisis of Baota Petrochemical Group Finance Company as the research object,which can reflect the current problems of most finance companies when they carry out bill business.This article is based on relevant financial theory and combined with domestic and foreign literatures.First,it introduced the development status of finance companies and their bill business,summarized the characteristics of finance company bill defaults and sources of risk,and found that finance company bills are mostly concentrated in industries with overcapacity,mainly private enterprises,and the amount of default is large and the subject is involved.More,also summarized the general factors affecting the default of financial bills from the external environment and internal factors of the company,which laid the foundation for the specific case analysis of Baota Petrochemical;and based on the above analysis of the basic situation of the financial company,this article continues to comb in detail In the case,the situation of the Pagoda Petrochemical Group Finance Company and the occurrence of the bill redemption crisis,from the four perspectives of the Group,the financial company,the bill intermediary,and supervision,conduct a specific analysis of the cause of the Pagoda Petrochemical Finance Company's bill default event,and combine the cases to occur The market response afterwards expounded the impact of the breach of the pagoda petrochemical bills on all parties.Finally,the relevant countermeasures were proposed from the three perspectives of the group,financial company and supervision.Through the research on the bill default of Baota Petrochemical Group Finance Company,the paper believes that in the process of finance company's development of bill business,the group should strengthen its own operation and management capabilities,coordinate the relationshipwith the finance company,and correctly understand and use the finance company's Function,financial companies should also improve the management capabilities of bills,strengthen compliance management,and at the same time strengthen external supervision to promote the healthy development of the bill market,these suggestions also have a certain reference value to the current bill management work of finance companies.