Correlation matrix.

Supply chain finance is newly emerging concept and grab attend of financial sercive providers, buyers and suppliers. This study empirically examines the impact of supply chain finance solutions (SCFS), banks financial risk on financial service providers’ financial performance using panel dataset of Asian Development Bank registered countries (Pakistan, China and Bangladesh) from 2012–2021. By breaking new ground, supply chain finance solution index is developed by combining several solutions to measure its impact on financial service provider financial performance. The results show a significant impact of supply chain finance solutions on financial performance of financial service providers. Furthermore, by offering SCF solutions a bank is able to reduce its financial risk for the external parties (e.g., investors, shareholders) This research encourages financial service providers (banks) to embrace the supply chain finance solution to enhance financial performance and allows them to evaluate their supply chain finance solutions investments as a technique to mitigate financial risk.