Research On FB Bank's Risk Management Of Accounts Receivable Finance In Supply Chain

Accounts receivable finance(AR finance)in supply chain is a new finance model launched by commercial banks in practice.In the finance mode,banks do not only focus on credit of the borrower,but also value their trade background and cooperation situation between the borrower and the core enterprise,which means banks consider the supply chain as a whole.So supply chain finance reduces financing risk of small and medium-sized enterprises(SMEs)and achieve a win-win-win situation among banks?SMEs and core enterprises.But because of the flexible finance mode?eomplex contract designing and more participating subjects,commercial banks should adjust risk-management policy in accordance with the specific risks of supply chain finance when promoting the new business.The paper introduces main risks of AR finance in supply chain and risk-management problems from the bank point of view.The research of the paper involves overall risk management during whole process of foan.At the same time,the paper proposes the countermeasures to improve the risk control of AR finance in supply chain by connecting the realities of FB Banks in China,through methods of empirical analysis and qualitative analysis.First of all,the paper finds out 3 dimensions which affect credit risk:the borrower qualification,the core enterprise qualification and bilateral cooperation;Secondly,the paper constructs logistic-default model using financial data from FB bank;Thirdly,the model is verified in the test;Finally,the paper puts forward suggestions for FB bank in areas of organization structure,credit financing system and risk management system construction.Hopefully,all above measures will be helpful to build a healthy environment for developing AR finance business and improve risk prevention ability of FB bank.