Core Viewpoint - Supply chain finance plays a crucial role in enhancing financial services for the real economy and alleviating financing difficulties for small and medium-sized enterprises (SMEs) in China. The banking sector, as a key participant, reflects the transformation of industrial structure and the innovative vitality of financial technology. The development of supply chain finance in China's banking industry is progressing towards a more standardized, intelligent, green, and inclusive high-quality development direction [1] Development Stages of Supply Chain Finance in China's Banking Industry - Initial Development Stage (2001-2009): The emergence of inventory pledge loans and factoring services in the late 19th century laid the groundwork for supply chain finance in China. The first pilot practices began in 2001, leading to a systematic development of supply chain finance services by banks, with financing scales ranging from hundreds of millions to billions [2] - Rapid Development Stage (2010-2017): Following several risk events, banks began to shift their focus from front-end to back-end operations, collaborating with core enterprises to provide financing for their upstream and downstream suppliers. The trend of platformization emerged, integrating information, goods, funds, and logistics to mitigate risks [3][4] - High-Speed Development Stage (2018-2024): The issuance of various national policies and the rapid advancement of financial technology have propelled the growth of supply chain finance. By 2023, the industry scale reached approximately 41.3 trillion yuan, with a year-on-year growth of 11.9% and a five-year compound annual growth rate of 20.88% [5][6] Challenges Facing Supply Chain Finance in China's Banking Industry - The precision of supply chain finance services needs improvement, as banks often lack in-depth research on the characteristics of different industrial chains, leading to homogenized financial products [9] - Customer acquisition and marketing strategies require enhancement, as traditional supply chain finance heavily relies on the credit endorsement of core enterprises, limiting service scope and increasing customer acquisition costs [9] - The overall level of digital application in supply chain finance needs to be elevated, with many banks facing challenges in data integration and application [9] - Cross-departmental and cross-regional cooperation, as well as the development of specialized talent, need strengthening to improve service efficiency and effectiveness [9] Policy Guidance for High-Quality Development - Recent policies emphasize the need for standardized development of supply chain finance, promoting collaboration among enterprises along the industrial chain. The focus is on enhancing the resilience and security of supply chains, aligning with national strategies for long-term development [10][11] Future Directions for Supply Chain Finance - The industry should innovate financial products tailored to the characteristics of technology-driven SMEs, support green transformation, and enhance accessibility for micro and small enterprises [13] - Exploring decentralized models and leveraging data credit and asset value can broaden financing channels for SMEs [14] - Strengthening technical empowerment and optimizing organizational structures will enhance service quality and accelerate the digital transformation of supply chain finance [15][16] - Promoting internationalization of supply chain finance will better serve China's advantageous industries and enterprises expanding abroad, necessitating compliance with cross-border regulations and the development of diverse financial products [17]

Core Insights - The article emphasizes the importance of green finance in the banking sector, particularly in the context of China's "Two Mountains" theory and the 20th anniversary of its proposal [1] - Industrial Bank has been a pioneer in green finance, launching the first energy efficiency project financing product in 2006 and achieving significant growth in green loans and bond underwriting [1][2] - The bank's green loan balance reached 1,075.6 billion yuan by June 2025, with a cumulative increase of 756.2 billion yuan since the end of 2020, reflecting a 237% growth [2] Group 1: Organizational Structure and Digitalization - Industrial Bank has established a robust organizational structure and digital initiatives to support its green finance operations, including a dedicated green finance department and a digital platform for managing green projects [4][5] - The bank's digital platform, "Point Green to Gold," was launched in 2017 and has been enhanced to include a comprehensive carbon management service platform in 2023, aiding in project identification and environmental impact assessment [5][6] Group 2: Product Innovation and Service Models - The bank has developed a three-tiered product and service system for green finance, which includes diverse group products, specialized "dual carbon" services, and targeted industry solutions [6][8] - In the first half of the year, Industrial Bank launched over 340 innovative green finance products, amounting to more than 25.9 billion yuan [6] Group 3: Case Studies and Partnerships - The bank has successfully partnered with Huafeng Group, a leader in green textiles, providing financial support for multiple projects and demonstrating its competitive advantages in approval efficiency and interest rate discounts [2][3] - For the "Fuqing Longjiang River Comprehensive Governance Project," the bank approved loans of 217 million yuan in under a month, showcasing its effective operational capabilities in green finance [4][8] Group 4: Climate-Friendly Financing Mechanisms - Industrial Bank has introduced a mechanism linking loan interest rates to borrowers' environmental performance, incentivizing companies to enhance their green practices [3][7] - The bank's climate-friendly project scoring system evaluates projects based on various environmental criteria, influencing loan terms and promoting sustainable practices [7][8] Group 5: Commitment to Carbon Reduction - Since 2025, the bank has facilitated carbon reduction-linked loans totaling 65.52 billion yuan and has developed various carbon financial products to support enterprises in their low-carbon transitions [9]