Research On The Application Of Blockchain In Chattel Pledge Risk Management

In recent years,due to the pressure of the domestic economy and the intensified Matthew effect of large companies,the living space of SMEs has been significantly squeezed.And these enterprises are easy to trapped in business difficulties.However,insufficient collateral and weak anti-risk ability restrict SMEs' financing channels and financing scale greatly.In response to these problems,commercial banks have launched a financial product named “Chattel mortgage”,which uses the movable property resources of SMEs as pledges to provide financial support for SMEs.Chattel mortgage has more participants and more complicated business processes.There are information barriers between banks and other participants.And credit risks,operational risks,market risks and legal risks are prone to appear in the process of transactions.With the continuous innovation of blockchain,people have discovered that technologies and characteristics of blockchain are deeply compatible with chattel mortgage,and blockchain can control the risks of chattel mortgage.Therefore,we can combine the technologies of the blockchain with the characteristics of the risks of chattel mortgage,and research on the mechanism between them,to optimize the risk management of chattel pledge through blockchain,and promote of the development of chattel mortgage.The essay mainly discusses the functions and disadvantages of blockchain in the management of chattel mortgage's risk through literature research and case analysis.First of all,through literature reading,combing the blockchain's technologies and characteristics,chattel mortgage's business process and risks,to find that the blockchain's characteristics,such as distributed storage,anti-tampering,traceability,can solve the problem of information barriers between banks and enterprises,which reduces the risks of chattel mortgage.Subsequently,based on Asymmetric Information theory,the essay analyzes to the feasibility and function path of the application of blockchain to the risk management of chattel pledge.Later,to analyze the effect of blockchain in practical applications,the essay discusses the function of blockchain's application to the management of chattel mortgage's risks.Bank of Suning's product named "Huoyirong" is the object of the case analysis.The essay analyzes commercial banks' optimization of the process and effects of risk management of chattel mortgage through blockchain.Then the essay discusses the problems of risk management of chattel mortgage through blockchain based the risk of " Huoyirong",and expounds the reasons of these problems.Finally,in view of the existing problems,the essay provides some suggestions.Through the research of this essay,it can be realized that,through reducing the information barriers between banks and enterprises,blockchain can solve the problems of the investigation of trade background and property ownership,tracking of pledge's market price,monitoring of sales back,which are difficulties in risk management of chattel mortgage.However,due to the blockchain itself and the integration with participants and banks,there are problems in the risk management of chattel mortgage.So commercial banks should take actions to improve technology research,legal supervision,business cooperation and talent management,to improve the risk management of chattel mortgage.