Research On Risk Control In The Supply Chain Of China CITIC Bank

With the continuous development of banking in the financial sector,supply chain finance has become a new type of financial business.In recent years,the supply chain financial services real economy has become an important starting point for China’s financing structure reform,in solving the problem of financing difficulties and expensive financing for small and medium-sized enterprises to give banks a favorable solution,coupled with the guidance and support of national policies for the development of supply chain finance,so that the scale of supply chain finance has expanded significantly,bringing huge benefits to banks.However,supply chain finance is different from traditional financial business,and supply chain finance risks have the characteristics of integrity,wide range of fluctuations and strong influence.How banks control risk in supply chain finance is particularly important.This paper systematically sorts out the research results of domestic and foreign scholars on supply chain financial risk control,and builds on this.Combined with the three main models of SUPPLY Chain Finance of China CITIC Bank,the risk types are identified in terms of entities,namely the credit risk of financing enterprises,the credit risk of core enterprises,the risk of supply chain operation and the risk of trading assets.In order to cope with the losses caused by these four types of risks,China CITIC Bank has adopted methods such as hierarchical control of various types of financing enterprises,division of core enterprise customer markets,construction of information sharing platforms and protection of transaction asset quality.In this paper,the supply chain finance evaluation system of CHINA CITIC Bank is constructed by the analytic hierarchy method,and the insufficient risk control of CITIC Bank’s supply chain risk is pointed out by analyzing the weight ranking of various risk factors in the evaluation system and combining the existing control methods of CITIC Bank on supply chain financial risks.It mainly includes the risk management of financing enterprises to be improved,the personalized services of core enterprises to be refined,the risk control of supply chain operation to be strengthened,and the price management of trading assets to be improved.Through the research,this paper puts forward several suggestions for the financial risk control of the supply chain of China CITIC Bank: First,for the risk control of financing enterprises,China CITIC Bank should strengthen the review before lending,strictly control the use of funds during lending,and establish a long-term supervision mechanism after lending.Second,for the risk control of core enterprises,the entry threshold of core enterprises should be raised and the differentiated management of core enterprises should be strengthened.Third,in view of the risk control of supply chain operations,China CITIC Bank should use science and technology to strengthen information supervision and realize the dynamic management of information and establish a risk early warning and emergency response system.Fourth,for the risk control of trading assets,China CITIC Bank should set up risk control points for trading assets and improve the guarantee system for trading assets.The research of this paper is based on the current practical problems and has certain research significance: on the one hand,when major banks carry out supply chain finance business,they can divide risks according to different subjects and provide reference significance for how to control risks,on the other hand,they can help small and medium-sized enterprises solve the problem of difficult and expensive financing,alleviate their financial pressure,and better meet the needs of the development of small and medium-sized enterprises.Provide a new perspective for the development of small and medium-sized enterprises when they encounter financial difficulties.