AEMPS

Credit Risks and Innovative Models in Commercial Bank Supply Chain Finance

Author

Shiyan Liu * 1

1 Monash University

Corresponding Author

Shiyan Liu

Keywords

Supply Chain Finance, Credit Risks, Financing Models

Abstract

This paper focuses on the credit risk of the commercial banks' supply chain finance business. It traces the concept, theory, and three stages of development of the supply chain finance, analyzes three main models for Chinese commercial banks—the inventory, accounts receivable, and prepayments—and identifies two core credit risks: excessive reliance on the credit of core enterprises and fluctuations in the value of collateralized inventory. Using the Agricultural Bank of China's "Chain-Link Loan" as an example, this paper analyzes its product content and risk control methods based on a "high entry threshold + electronic business platform," and proposes optimization suggestions. Commercial banks should accelerate the digitalization of their business, build risk control systems based on big data, raise the entry standards for core enterprises and financing enterprises, and improve their post-loan management systems. Through comprehensive risk control, they can reduce credit risk and promote the sustainable development of supply chain finance.

Citation

Shiyan Liu. Credit Risks and Innovative Models in Commercial Bank Supply Chain Finance. AEMPS (2026) Vol. 283: 217-224. DOI: 10.54254/2754-1169/2026.35356.

References

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