Abstract
Credit risk is the core issue of supply chain finance. In the supply chain, problems happened in different enterprises can influent the whole to different degrees through transferring, thus statuses of all enterprises and their different influences should be considered when evaluating the supply chain’s credit risk. We examine the characters of supply chain network and complex network, use the local growing complex network to simulate the real supply chain, use cluster analysis to classify the company into several levels; Introducing each level’s self-adaption weight formula according to the company’s quantity and degrees of this level and use the weight to improve the credit evaluation method. The research results indicate that complex network can be used to simulate the supply chain. The credit risk evaluation (CRE) of an enterprise level with bigger note degrees has a greater weight in the supply chain system’s CRE, thus has greater effect on the whole chain. Considering different influences of different enterprise levels can improve credit risk evaluation method’s sensitivity.
Highlights
Chain finance is a financial service that uses controllable credit risk of the whole supply chain, instead of the uncontrollable credit risk of the SME, to solve SME’s financing problem
Result analysis: 1) R < R1, it means using controllable credit risk of the whole supply chain, instead of the uncontrollable credit risk of the SME can reduce the credit risk that loaning to SMEs, solve SME’s financing problem; 2) R > R*, considering different influences of different enterprise levels can improve credit risk evaluation method’s sensitivity, getting a more accurate measure of the whole supply chain’s credit risk
Through reasonably fitting the supply chain and bestowing weighing to each layer, this paper considers influences to the supply chain from all enterprises, uses enterprises’ status difference to improve the existing evaluation method of supply chain finance credit risk and helps bank to measure loans risk under the background of supply chain more precisely and reduce bank loans’ uncertainties, which is beneficial for smoothing the financing channels of SMEs
Summary
Chain finance is a financial service that uses controllable credit risk of the whole supply chain, instead of the uncontrollable credit risk of the SME, to solve SME’s financing problem. According to the above analysis, this paper studies the supply chain finance’s credit risk evaluated problem based on an evolving local-world of complex network and the classification of enterprises’ impact It improves the preferred mechanism of enterprises in the supply chain complex network and regards the degree of isomerization between the new enterprise and an old one as the determinant of whether the old one enters the new one’s local-world, while regarding the degree of old enterprise node that is in the local-world as the determinant of whether it becomes the new one’s partner, to build supply chain complex network; Secondly, it uses the cluster analysis to layer the supply chain network and gives the adaptive weight formula of enterprises in each layer; it uses the weight to improve the existing credit risk evaluation model and a numerical example is provided to verify the conclusions
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