Research On Credit Risk Evaluation Of Supply Chain Finance Business Of Commercial Banks In China

With the continuous development of productivity and the aggravation of themarket competition, the competition between enterprises has been graduallytransformed into the competition between supply chains. At the same time, theproblems of funds between supply chain internal numbers occur. Then Chinesecommercial banks develop supply chain finance business. It can not only alleviate thefinancing difficulties of small sized enterprises in some extent, but also promote a newarea for commercial banks. But the products of China’s commercial banks are serioushomogenization, supply chain finance business also has the malignant competition andthe trend of blind expansion. Credit risk has benn continuous exposured. So it isnecessary to strengthen the monitoring of financial services supply chain credit riskFirst, this paper talks about the credit risk theory of supply chain finance, includenot only credit risk, but also supply chain finance theory and the supply chain financecredit risk management theory.Second, summaring the situation of the credit risk of financial supply chain inchina from the macroscopic view and microscopic view.Macroscopically, firstintroduces the development of China’s supply chain financial business, and thenspecify the blindness exists in commercial bank when they promote supply chainfinance business.The banks not only lack of independent risk assessment system andstrict supply chain access standards, but also the information technology during thebusiness management is not high.Microscopically, according to the different stages ofthe production has different characters of money demand, supply chain finance isdivided into three modes, and then analyzes the business process and potential creditrisk of each modes.Third, according to the characteristics of the credit risk of supply chain financebusiness and combine the financing enterprise with its supply chain situation,established the risk evaluation system of supply chain finance business. Then use theprincipal component analysis to put the26indexes into9indexes.This step can not only eliminates the effect of collinearity between the indicators,but also convenient tooperation in practice. Then making the LOGISTIC regression analysis and get theLOGISTIC model of supply chain finance mode. Later, make a contrast with theLOGISTIC model of the traditional credit, it is eaisily to find that the financial supplychain LOGISTIC model is not only take more information of the financing companies,but also has higher accuracy.Finally, put forward specific proposals according to the problems of supply chainfinance business during its development. Commercial banks should not only improvethe credit risk management level from evaluation of credit risk and credit risk controldirectly, but also take auxiliary measures like strengthen the staff level, establishmentof SME information library management. At last, banks shoula establish early warningsystem of credit risk as well. Once credit risk occures, banks can deal with it quicklyand effectively.