Study On Supply Chain Finance Business Mode And Risk Prevention Of Ping An Bank

Supply chain finance, as a new kind of credit, is becoming more and morepopular among domestic banks. Different from the previous credit, the financingobjects’ finance position is no longer the only criterion for credit feedback. Themost significant feature of supply chain finance business is that it takes supply chainas a dynamic environment into consideration. Small and medium sized enterprises canadd value to their own credits by establishing stable and good trade relations with thecore enterprises on supply chain, which can greatly ease their financing difficulties.Banks can broaden the original large enterprise-based customer base through thebusiness, and the resource-rich SMEs can also create new profit growth opportunitiesfor banks. Especially for some small and medium-sized banks, they are obviouslydisadvantaged in competition for quality customers because80%of the limited largeenterprises resources are controlled by large state-owned banks. This makes itnecessary that they should expand new customer object by improving businessstructure and increasing financial product innovation. Where there is demand, there isdevelopment. Ping An Bank(The Original Shenzhen Development Bank), starts itssupply chain finance business from2001and this can be said the latest attempt indomestic modern supply chain business area. Driven by interests, supply chainfinance business has been developing rapidly. Up to now, all the16banks listed havecarried out the business and have gradually developed their own brand businessfeatures. Other banks have also joined them. However, they also encounter a numberof obstacles and meet some new risks in the process of rapid development.Shenzhen Development Bank, the predecessor of Ping An Bank, as the pioneerof domestic supply chain finance business, practices differently from the newcomers.Ping An Bank has its own gradual development as for its supply chain financebusiness and its level is also at the forefront of the industry. Therefore, to study itsspecific business is of great significance. The thesis takes Ping An Bank as researchobject. By researching its actual operation in supply chain finance business, the thesistries to get a further understanding of supply chain finance business.The thesis contains four parts. In the first part, I analyze the background ofsupply chain finance business. Supply chain finance business, as a new financeservice, is based on the background that domestic SMEs have huge financing needs and they want to develop new profit growth points by transformation. In the secondpart, I analyze the research status in detail from the supply chain finance model andrisk the above two aspects. It can be found that the recent research mostly stay intheory. The literature on the actual operation of banks is not too much. Therefore, theresearch on banks’ supply chain business practice is of great significance. In the thirdpart, the thesis takes Ping An Bank as its research object. I firstly introduce the bankand its supply chain finance business development course, and then I take SWOTanalysis to analyze Ping An Bank’s business status. I propose the growth developmentstrategy. Then I divide its existing supply chain finance production into threecategories, and I analyze their manifestations, features, and presence of operatingrisks in detail. At last, I put forward some recommendations for risk prevention.