Is Supply Chain Finance the Solution to the Financing Conundrum?

2019 ◽  
pp. 30-61 ◽  
Author(s):  
Baozhuang Niu ◽  
Zihao Mu ◽  
Youchu Zeng
Keyword(s):  
Economic Growth ◽  
Supply Chain ◽  
Commercial Banks ◽  
Driving Forces ◽  
The State ◽  
State Council ◽  
Service Channel ◽  
Supply Chain Finance ◽  
Operation Process ◽  
Scale Of Operation

Small and medium-sized enterprises are the major driving forces to boost China's economic growth. However, the transformation and upgrading of small and medium-sized enterprises are always subject to the scale of operation and other factors, which result in severe impediment to obtain loans or other finance service from traditional commercial banks. As the State Council reports, small and medium-sized enterprises' finance troubles were highlighted at the State Council's executive meeting and suggested China should enrich the fundraising channels for small and medium-sized enterprises. Based on the unique finance service features, supply chain finance has the potential of satisfying the large finance demand to become an effective fundraising and other finance service channel for small and medium-sized enterprises. Thus, it is vital to explore the operation process of supply chain finance in a deeper level.

Relationship Between the Scale, Structure, Efficiency and Economic Growth of Tobacco Financial Development in China

2021 ◽  
Vol 7 (4) ◽  
pp. 432-442
Author(s):  
Yi Zhang ◽  
Shuwang Yang ◽  
Hang Zhang
Keyword(s):  
Economic Growth ◽  
Supply Chain ◽  
Financial Development ◽  
Tobacco Industry ◽  
Case Analysis ◽  
Scale Structure ◽  
Advantages And Disadvantages ◽  
Financial Products ◽  
Operation Process ◽  
The Government

Objectives: This paper analyzes and studies the relationship between the scale, structure, efficiency and economic growth of tobacco financial development in China. Methods: Through the research on the theory of supply chain finance, this paper studies the products and application of the financial chain in the tobacco industry by using the methods of case analysis, literature research and case analysis. At the same time, taking the products of a bank as an example, this paper describes the product handling and operation process in detail, and analyzes the advantages and disadvantages of the products. Results: Commercial banks at home and abroad have gradually realized the power of the vigorous development of tobacco financial supply chain and actively developed tobacco supply chain financial products. The promotion of China's bank supply chain financial products at this stage will help banks to improve and adjust the traditional credit business structure. At the same time, it helps to improve and optimize the structure of tobacco customers and enhance the business cooperation between tobacco companies and banks. This can reduce the business risk of the tobacco industry and improve the overall profitability of the tobacco industry. Conclusion: The tobacco industry should steadily take advantage of the organization and coordination advantages of the government and make use of development financial funds to overcome difficulties. Only by improving the design and enlarging the leverage of financial support policies can the tobacco industry further develop.

scholarly journals Analysis of Signal Game for Supply Chain Finance (SCF) of MSEs and Banks Based on Incomplete Information Model

2019 ◽  
Vol 2019 ◽  
pp. 1-6 ◽  
Author(s):  
Zhang Tao ◽  
Xin Li ◽  
Xinquan Liu ◽  
Nana Feng
Keyword(s):  
Supply Chain ◽  
Incomplete Information ◽  
Commercial Banks ◽  
Information Model ◽  
Business Environment ◽  
Small Enterprises ◽  
Model Based ◽  
Supply Chain Finance

The signal gaming model based on incomplete information is used to analyze the decisions of commercial banks and medium-sized and small enterprises (SMEs) in supply chain finance business. It is found that the returns of banks are closely relied on the probability of good SMEs join which is proportional to θ (the probability of “good” SMEs in the market) and p (the probability of “good” SMEs chosen to join the supply chain finance) in supply chain finance business, and the default cost is an important constrain for determining the strategies adopted by the SMEs and the banks. To achieve higher returns, SMEs and banks should make effects to create a better supply chain finance business environment to achieve the separation equilibrium.

Study on Information Asymmetry and the Risks Initiated by it in the Supply Chain Finance

2014 ◽  
Vol 496-500 ◽  
pp. 2827-2831
Author(s):  
Guo Fang Qiu ◽  
Yun Zhang ◽  
Chong Wang
Keyword(s):  
Supply Chain ◽  
Information Asymmetry ◽  
Commercial Banks ◽  
Financial Risk ◽  
Principal Agent ◽  
Main Body ◽  
Information Risk ◽  
Supply Chain Finance ◽  
Multi Agent ◽  
Principal Agent Relationship

From the perspective of commercial banks, put the financial supply chain in the principal-agent relationship which is multi-agent and of multiple sections. This paper analyzed the principal-agent relationship between different subjects and commercial banks and information asymmetry. Secondly it also analyzes the information risk of supply chain finance caused by asymmetric information from in three aspects as risk types, risk behavior and risk loss. Finally it gives the Suggestions and countermeasures aimed to financial risk in supply chain information. It provides reference to main body understanding and the information risk of supply chain finance.

scholarly journals Research on the Innovative Development of Financing Model of Pledge of Title to Goods under Commercial Banks’ Supply Chain Finance

2020 ◽  
Vol 6 (2) ◽  
pp. p25
Author(s):  
Jun Chen ◽  
Keer Xue ◽  
Kefan Zhang ◽  
Xinyi Wang
Keyword(s):  
Sustainable Development ◽  
Supply Chain ◽  
Future Development ◽  
National Economy ◽  
Commercial Banks ◽  
Innovative Development ◽  
Macroeconomic Factors ◽  
Supply Chain Finance ◽  
Financing Model

As an important part of China’s commercial Banks’ supply chain finance, pledge of goods and rights financing is an important channel for financing small and medium-sized enterprises after years of development and improvement, providing an important force for the stable and sustainable development of the national economy. Due to macroeconomic factors and the independence of each participant, the business reflects certain risks in the practice process. Starting from the analysis of business content, this paper conducts in-depth research on the problems exposed by different subjects and puts forward Suggestions for future development.

scholarly journals Analysis of the Current Situation of Supply Chain Finance and Risk Control—Based on the Perspective of Commercial Banks

2021 ◽  
Vol 9 (4) ◽  
pp. 191
Author(s):  
Danting Zheng
Keyword(s):  
Supply Chain ◽  
Commercial Banks ◽  
Mortgage Lending ◽  
Present Moment ◽  
Policy System ◽  
Supply Chain Finance ◽  
Financing Risk ◽  
New Business ◽  
Banking Business ◽  
And Control

<p>China’s economic policy system has been greatly adjusted up till the present moment. The scale of small and medium-sized enterprises mortgage lending is limited, but the demand for funds is increasing, and the need for core enterprises to grow and develop is increasing, supply chain finance effectively solved the needs of the above enterprises. Supply chain finance promotes the development of trade and commerce business, reduces financing risk, become a new business of commercial banks. Compared to traditional banking business, it reduces certain credit risk and improves the utility of funds, but China’s supply chain financial system is not perfect enough, with a certain degree of system operation risk. Focus on the analysis of supply chain finance status quo, analyze China’s supply chain development status and prospects, assess and analyze the risk, and do a good job of risk prevention and control. As an important part of the supply chain, commercial banks are necessary to pay attention to various risk points to the supply chain of the financing subject. Avoiding and reducing the risk of supply chain finance business are the top priority issues required to be solved for commercial banks.</p>

Comprehensive Evaluation of Credit Risk of Supply Chain Finance among SMEs: Based on FCE

2011 ◽  
Vol 58-60 ◽  
pp. 668-673 ◽  
Author(s):  
Juan He ◽  
Li Wei Kang ◽  
Zhong Hua Ma
Keyword(s):  
Risk Factors ◽  
Decision Making ◽  
Supply Chain ◽  
Credit Risk ◽  
Commercial Banks ◽  
Comprehensive Evaluation ◽  
Supply Chain Finance

Given the ambiguity, complexity and subjectivity of credit risk among SMEs, this paper is going to adopt FCE method to have a comprehensive evaluation of their credit risk, And it also will quantize and evaluation various risk factors to offer a qualitative reference to decision-making in optimization of commercial banks as well as management and subscription of SMEs.

The Politics of Immiserizing Growth: Mexico in Comparative Perspective

2019 ◽  
pp. 55-84
Author(s):  
Judith Teichman
Keyword(s):  
Economic Growth ◽  
Indigenous Population ◽  
Driving Forces ◽  
Trade Agreement ◽  
The State ◽  
Mexican History ◽  
Neoliberal Reform ◽  
The North ◽  
Political Exclusion ◽  
Path Dependent

This chapter advances a political explanation of immiserizing growth in Mexico. It identifies five episodes of economic growth in modern Mexican history during which the Indigenous population benefitted less than the general population, did not see any improvement in its level of deprivation, or experienced worsening circumstances. The chapter argues that political exclusion and unequal inclusion were the driving forces behind a long path-dependent process that occurred in conjunction with an exclusionary ethno/cultural ideology. The political process that accounts for immiserization included state actions and inactions, such as exclusion from or unequal access to state resources and services. Such actions and inactions bolstered cultural and social mechanisms of marginalization. None of the pre-1980 economic development strategies pursued by the state gave serious attention to the interests and welfare of the Indigenous population. However, the arrival of neoliberal reform and economic globalization in the form of the North American Free Trade Agreement, with its vigorous encouragement of state withdrawal, set the stage for an unprecedented level of abandonment of Indigenous welfare as even the minimal supports of the earlier era were dismantled. A comparison with the South Korea reinforces the argument regarding the impact of long historical processes and the state in creating and reinforcing social exclusion during periods of economic growth.

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