Strategy Of Supply Chain Finance Development Bank

Online supply chain finance is an innovative product based on both supply chain Management and industrial entities, and is formed with the development of informationalization and Platformization. Many banks, such as Ping An Bank and China Citic Bank have launched financial services like "online supply chain finance"and "electronic supply chain finance" successively. Unlike traditional bank financing business, online supply chain finance is a typical product of trade financing. The credit risk of this type of product can not be evaluated by traditional valuation method. The operation status and future development of the online supply chain finance is closely related to the effectiveness of credit risk identification. Therefore, this article is of great significance to the identification and evaluation of the financial credit risk of this innovative product.This article covers the definition and characteristics of online supply chain finance, the status of platform construction and divides the product into three typical financing modes ---receivables financing, accounts receivable financing and inventory financing --- with which the credit risks are identified. Also,the article displays a comprehensive evaluation method that is comprised with static admission assessment and dynamic credit assessment, which are exactly adapted to this innovative product. This comprehensive method is a guidance for the financing decisions of banks. Conclusively, the article makes some recommendations about the credit risk management of the online supply chain finance.