Research on Risk Management Strategy in Purchase-Order Financing Business of Bank
Authors
Li Zhang, Zhiyu An
Corresponding Author
Li Zhang
Available Online November 2016.
- DOI
- 10.2991/febm-16.2016.58How to use a DOI?
- Keywords
- purchase-order financing, principal-agent theory, risk management
- Abstract
This paper studies the strategies of purchase-order financing business for banks based on the behavior of the small and medium enterprise suppliers and the core manufacturers. The studies have shown that the main risk of order financing includes the credit risk of the buyer and the sellers. Banks should not only strengthen supervision, but also use the target incentive policy and risk management decisions to avoid moral hazard and adverse selection.
- Copyright
- © 2016, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Li Zhang AU - Zhiyu An PY - 2016/11 DA - 2016/11 TI - Research on Risk Management Strategy in Purchase-Order Financing Business of Bank BT - Proceedings of the First International Conference Economic and Business Management 2016 PB - Atlantis Press SP - 385 EP - 390 SN - 2352-5428 UR - https://doi.org/10.2991/febm-16.2016.58 DO - 10.2991/febm-16.2016.58 ID - Zhang2016/11 ER -