Analysis on the influence of different risk sharing on participants in the financing chain(October 2014)

Abstract

The financing chain consisting one retailer, one supplier and one bank. 1The retailer lacks money and is a small enterprise. By comparing the results when the retailer and the bank bears risk, a research is carried out. The research announces that if the bank assumes the market risk the retailer's revenue will improve remarkably while the bank's revenue won't change much.