Development Status of Supply Chain Finance

In the second half of 200012000, SDB started the pilot survival financing business in two branches in Guangzhou and Foshan (full name: "pledge credit business of movable property and goods rights"), and the credit balance at the end of the year reached 2 billion yuan. Using the multi-stage redemption model under specific pledge, combined with the use of bank acceptance bills, the total settlement and margin deposits exceeded 2 billion yuan. After that, from the pilot to the whole system promotion, from self-compensation trade financing, "1+N" supply chain financing, to the systematization and refinement of supply chain financial services, the bank took the lead in launching the brand of "supply chain finance" in the domestic banking industry in 2006, and the accumulated credit has exceeded 800 billion yuan so far.

The huge market potential and good risk control effect of supply chain finance naturally attract many banks to intervene. Shenzhen Development Bank and China Merchants Bank first started credit system, risk management and product innovation in this respect. Subsequently, around the urgent financing needs of small and medium-sized enterprises in the supply chain, many domestic commercial banks began to follow suit and develop similar services with different names, such as supply chain financing, trade financing and logistics financing. Nowadays, most commercial banks, including the four major banks, have launched their own supply chain financial services.

Since the second half of 2008, due to the severe economic situation, the business environment and performance of enterprises have been deteriorating. No matter in western countries or China, commercial banks are implementing credit crunch, but supply chain financing shows a trend against the trend. According to the data of the first quarter of 2009, the discount of the six listed banks (ICBC, Bank of Communications, China Merchants Bank, Xingye, Pudong Development Bank and Minsheng) increased by 455.825 billion yuan in the first quarter, an increase of 66.4% compared with the end of last year, which fully shows the favor of small and medium-sized enterprises for trade financing and the importance that commercial banks attach to supply chain settlement and financing.

At the same time, with the development of foreign banks' business in China, commercial banks such as Standard Chartered and HSBC, which are good at traditional trade financing, have also joined the competition in the domestic supply chain financial market.