Research On Supply Chain Financing Mode Of Commercial Bank

After the two industrial revolutions, there is a breakthrough on the scale andcomplexity of human production activities. As the carrier of social economic activitiesof enterprises, the production division of labor is no longer limited to the enterprise, theenterprise division of labor between enterprises has become closer. Along with thedevelopment of the division of labor based on mutual dependence, the upstream anddownstream chain structure formed between the enterprises, known as the supply chain.In the80’s, revolutionary advances in information technology have laid the technicalfoundation for the division of labor and cooperation of enterprises in a wide range, so asto promote the extended supply chain in the global scope. In order to improve thecompetitive ability and reduce the production cost, large multinational companies areconstantly looking for lower costs in the global scope, and the original in-house processtransfer gradually to those who have comparative advantage, so as to establish thepurchase and marketing of global sales network. In order to comply with this trend ofdevelopment, improve the competitiveness of commercial banks, the global commercialbanks continuous introduce financing mode and plans based on supply chain, andgradually formed a variety of supply chain financing model.With the liberalization of domestic financial industry, commercial banks are facingfiercer competitions, corporate financing channels will be more diversified. Whether thefuture commercial bank can foothold in the competition, rely on their ability to providespecific financial service products for the enterprises, to help enterprises solve thepractical problems in the development of business. Under the background of a stabledomestic economic growth, and a structural improvement of domestic enterprises, thereis a great demand for finance services of supply chain; supply chain financing willbecome the main mode of enterprise management of liquidity. Bank of China is of China’s highest internationalization level in the banking system,with it’s branches all over the world, it supplies in the traditional financial services atthe same time, Bank of China has been actively exploring the supply chain financingbusiness model, and made many successful attempt, which more typical example is thesupply chain financing services provided for the DC group. The supply chain financingbusiness succeeds not only through the design of innovative solutions and rigorousfollow-up supervision, on one hand, the effective control of the bank’s overall credit risk,and also effectively promotes enterprise customers, domestic and internationalsettlement, public savings deposit growth, on the other hand, solves the financingproblem of upstream supply chain enterprise-DJC company. It ensures that the coreenterprise DC group’s maize raw materials supply, and reduces the cost of raw materials.This article, bases on analyzing the supply chain financing, using supply chainfinancing of DC group as a case, to explore and research the basic model for supplychain, thus provide helpful reference for the cooperation between commercial banks andenterprises in the supply chain financing.The first chapter introduces the background of supply chain financing and thepositive significance for the supply chain enterprises and commercial banks, andintroduces the operation status quo of DC group and its basic demand for the supplychain financing.The second chapter introduces the birth of commercial bank and the developmentof commercial bank credit business, both theoretically and practically, analyzes thesuccessful practice of theoretical basis on the supply chain financing and the researchresults at home and abroad, and the successful practice both in domestic and foreigncommercial banks.The third chapter focuses on the analysis of basic supply chain financing mode andthe corresponding risk control measures, and further summarizes the credit risk, theoperation of supply chain financing risk and legal risk, puts forward the core supplychain financing risk management lies in the control of cash flow and the reasonablestructure of credit arrangements. The fourth chapter, starting from the DC group’s supply chain needs, introducesthe basic situation of DC group and the supply chain. The commercial banks form thefinal scheme through analysis of supply chain financing, credit supply chain todetermine the object selection, risk control measures, the basic elements. Secondly, thischapter focuses on the analysis of supply chain financing risk control measures and thedetailed operating range. Analyzed the first loan monitoring and operating funds toachieve reflux validate rationality of the scheme and process. Finally, after evaluation ofthe supply chain financing to DC group, analyzes the advantages and disadvantages ofthe future expenditures increase space.The fifth chapter summarizes the supply chain financing prospects, the positivesignificance of supply chain financing to companies and banks. At last raiserationalization proposals to the commercial banks to carry out the supply chainfinancing business.