Research on Commercial Bank Logistics Financial Business Risk in China

Abstract

Interaction and mutual demand between logistics and financial institutions lead to constant development of logistics financial business with rapid development of logistics industry in China. All major commercial banks begin to develop logistics financial business, and logistics financial business belongs to emerging business in China. Commercial Banks in China actively develop logistics financial business due to earning drive. Market environment is immature, and commercial banks are lack of experience in developing logistics financial business. Huge risks are hidden in logistics financial business in China commercial banks. Therefore, logistics financial business of commercial banks is studied in the paper, logistics financial connotation, present situation of development and main risks are analyzed, and strategies of preventing risks are proposed. In the paper, it is believed that the credit evaluation system should be established and improved; the relevant laws and regulations should be perfected; operation risk is controlled from the aspects of process, personnel, etc., and warehouse receipt pledge management should be strengthened, thereby lowering logistics financial business risks of China commercial banks, and promoting long-term development of commercial bank logistics financial business.