Research on Risk Management Strategy in Purchase-Order Financing Business of Bank

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/).

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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  -