Research On Supply Chain Finance Business Of Commercial Banks

Supply chain finance as a financial service under the current economic environment is just emerging and has become a new business growth point of China’s commercial banks. From the perspective of competition within the industry, the competition between the supply chains gradually replaced the original competition between enterprises, which requires commercial banks must follow the changes in service mode. Commercial banks can achieve a "win-win" by conducting supply chain financial service. On one side, it can adjust the supply chain co-funding streams, while reducing the overall financial cost of the supply chain; On the other hand, it can meet the needs of enterprises, especially providing SMEs Financing with a new way of thinking to break dilemmas, as well as creating a new business growth for the bank itself. Therefore, the study of how commercial banks carry out specific supply chain financial services, exploring the problems of commercial bank’s financial services of supply chain and making recommendations for promoting the development of China’s banking industry has a very important significance.Through site visits to the Bank of China branch in Shandong Province, this paper is based on the case of the supply chain financial services in Bank of China, combining the theory of supply chain and information obtained from the interview, and conducting in-depth investigation and analysis for the Bank of China supply chain finance business.Specific to several supply chain financial services products the Bank of China has launched, combined with relevant specific cases, this paper classifies six kinds of products and discusses the service model of each product and other features and advantages. Meanwhile, from the microscopic point of view, some problems are found existing in the supply chain finance business of Bank of China, mainly described from product diversity, risk management philosophy, in collaboration with third-party service organizations and information technology.To solve these problems, from the perspective of macro and micro, the paper puts forward related proposals for the development of Bank of China supply chain finance business. In terms of microscopic, Bank of China should further improve the internal supply chain to carry out financial business from perspectives such as enriching product diversity, innovation and risk management philosophy and strengthening cooperation with third-party service providers; in terms of macro, government should provide a favorable external environment for commercial banks to finance the development of supply chain operations from the technical and legal aspects, which is the only way to develop the supply chain finance in our country.