Study On Credit Risk Management Of Supply Chain Finance Of Commercial Bank

Supply Chain Finance is the financing to supporting enterprises of core business in industrial chain, based on true trade background and credit strength of core business, with the core business as the starting point, through the effective control of capital flow, information flow and logistics.It is the changing of bank credit pattern, leading to the "win-win" situation for parties involved. Supply Chain Finance has great market potential, is becoming a major new competition areas of banks. However, the Supply Chain Finance in China still in the initial stage. While the domestic commercial banks explore the supply chain financial services actively driven by revenue, they do not have a deep understanding to the risks of Supply Chain Finance. Their credit risk management is relatively backward, causing a huge potential risk. Therefore, it is very meaningful to study the management of credit risk on the combination of practical problems, on the basis of understanding of the Supply Chain Finance.This article begins with the analysis of Supply Chain Finance, introducing the definition of financial supply chain, three specific financing models (accounts receivable financing models, accommodating warehouse financing models, confirming warehouse financing models) and the practical significance to main parties involved. We think the Supply Chain Finance is the financing to supporting enterprises of core business and the changing of traditional credit model. Then, separately from the macro level and micro level, this article analyze the causes of credit risk of the Supply Chain Financial, laying foundation for the study of credit risk management; and establish the credit risk evaluation model of Supply Chain Finance with the method of Logistic regression, from the system point of view, rather than the business model designed. This way combined with factor analysis to quantify the credit risk of Supply Chain Finance. After we explore the current situation of credit risk management of Supply Chain Finance in domestic commercial banks and existing problems, mainly in the traditional organizational structure can not fully meet the needs of the credit risk management, credit risk assessment lack of relevant data, growing competition cause risk management more difficulty. Finally, this paper propose specific recommendations to improve risk management of Supply Chain Finance, including the establishment of early warning mechanisms and the organizational framework of Supply Chain Finance Division, focus on database development in order to speed up the application of the quantitative model, and innovation of cash flow control means.