Research On Guarding Financial Risks Of Public Universities In Borrowing Loans From Banks

Since 1999, Majority of China universities borrow loans from banks to solve the financial problem that they lack of construction capital to meet the requirement of rapid expansion. Recently, commercial loans become one of main drive force to develop higher education, meanwhile it also causes financial risks to universities. This paper aims at China public universities, firstly introduces the economic property and cost-sharing theory of higher education. Then, on the basis of analyzing the income structure of public universities and the necessity of borrowing loans, the paper expounds the actuality and problems of university loans, and summarizes the main features and influencing factors of university loans. Then the paper set up a game model involving government, bank and university to analyzes the causes of financial risks and the way to solve them. At last, the paper put forward a safe-scale model of university loans to discuss the quantity of suitable university loans from the angle of financial management.