The Research On YC Bank's Risk Management Of Sugar Industry Supply Chain Finance

Supply chain finance is a new financial product which has large potential. In almost every commercial banks, it's an important way to develop new business. Because it can take the company's supply, productions and sales as a whole, supply chain finance becomes a competitive field in every commercial bank in China. Thanks to the climate of Guangxi, Sugar cane planting has become major economic sources of local farmer. And the sugar industry has become an important industry in Guangxi agricultural economy. Guangxi has many sugar cane planting fields. Laibin is a major base of of Guangxi. In Laibin, sugar industry is a primary industry. With the sugar industry supply chain extending, sugar industry is continuously producing emergent industries. For the sake of reducing the costs, increasing the productions and improving the competition, it is necessary to integrate the whole sugar industry, so that the whole sugar industry will become a sugar industry supply chain. Every bank in Laibin take the sugar industry supply chain finance as a new business. They will take the whole sugar industry chain as a whole in financing service. It unifies commercial banks, agricultural enterprises and the third party logistics enterprises together organically, to realize the multi-win situation in every link of the sugar industry supply chain, aims to make the value of sugar industry supply chain finance maximization.Therefore, as a financial institution that wants to take its place in the field of the sugar industry chain finance market, it is necessary to study on the risk of the sugar industry supply chain finance.The subject and content of this article is about YC bank's risk management of sugar industry supply chain finance. I summarize the characteristics of sugar industry supply chain finance which base on the theories of bank's risk management and supply chain finance and refer to the existing agricultural supply chain finance model. I raises the advice of YC bank's risk management of sugar industry supply chain finance under the characteristics of sugar industry supply chain finance. Firstly, this paper review the theories and study of risk management and supply chain finance, introduce some basic theories and process of risk management and make the readers know the definition, nature and model about supply chain finance. Secondly, this paper introduces the origin, the development tendency, the present situation, the kinds and the probability of risk, the risk of evaluation matrix and the analysis of the risk reduction strategies of supply chain finance in China on the base of understanding the present situation and the industry background of YC bank's sugar industry supply chain finance. And then this paper will do a risk identification and risk assessment on YC bank's sugar industry supply chain finance. After that the paper will put forward the problems which YC bank's sugar supply chain finance is facing at this stage and give some advice on YC bank's risk management of sugar industry supply chain finance. Finally, YC bank need to perfect the basic flow of supply chain finance services. Before the loan, it is mainly to analyze risk of core enterprise. In the loan, the bank will strictly screened small and medium-sized enterprises in the supply chain according to risk measures. After the loan,the bank will master risk dynamics of the supply chain according to risk monitoring. At the same time, in order to ensure the safety of assets in the sugar industry supply chain finance, the bank need to do well in comprehensive risk control management.