Research On The Current Situation And Governance Of Non-performing Loans In The Supply Chain Finance Of Bank Of China N Branch

Supply chain finance business,as an innovative financial service mode,is instrumental in optimizing customer structure,mitigating credit loan tension,and increasing channels of revenue,and thus has in recent years been widely used in commercial banks.Under the current policy guidance of de-leveraging,adjusting structure,and serving the real economy,supply chain finance is again brought to the highlighted attention of banks and enterprises.Following this trend,the N Branch of the Bank of China has been proactively expanding its regional supply chain finance market.However,under the current environment of downward macro economy,the key industries in Inner Mongolia area,represented by coal and steel,start to have the problem of excess capacity of production,resulting in the outbreak of credit risk of upstream and downstream customers,especially small and medium enterprises of low anti-risk capacities.This has also deeply impacted the supply chain finance business of the N Branch of the Bank of China.Under this background,combined with the economic situation of Inner Mongolia,this work deals with the theoretical and empirical study for the current status,causes and management measures of the non-performing loans of supply chain finance of the N Branch of the Bank of China.First,domestic and foreign theoretical study of non-performing loans and supply chain finance is summarized.Then,the current status of the supply chain finance is analyzed from the perspective of overall situation,industries,regions,and customers,etc.After that,empirical study for cases of non-performing loans of supply chain finance of the N Branch of the Bank of China is performed,and three main causes are recognized including insufficient identification of potential risks,inaccurate credit evaluation and rating,deficiency of credit approval process,and shortage of professional supply chain finance talents.Finally,measures aimed at managing non-performing loans are proposed.They include strengthening risk management of every process involved in this business,increasing accuracy of credit rating,improving credit approval system,and training professional talents.To summarize,this study may help enhance the credit loan quality of supply chain finance for the N Branch of the Bank of China.It can also be used to serve as a reference for other commercial banks on preventing non-performing loans of supply chain finance.