Research Of Avoiding The Risk Of Operation On Borrowings For Universities

Since 1999, Chinese higher education has got great-leap-forward development with the large scale expansion of universities, realizing the popularized education. However, the swift and violent development could only be realized with the support of large numbers of fund. Yet, the fund offered by the government can' t keep pace with the demand of their expansion. Consequently, although the manner to raise loan for the development has broken the principle in the economic community and education at home and abroad that universities can' t be operated in deficit as a public utility, the way of making use of the market of financial capital has been proved an effective channel through the adoption by some universities. At present, it is quite common for the universities to raise loan, the main method of which is loaning from the banks.However, loaning from the banks is risky. Substantive debt has been a key restraining factor to the development of universities. A profound crisis will come forth in Chinese higher education if it can' t be solved well. Therefore, how to control and defuse the risks of loaning becomes so vital for raising the utilization rate of loan.This thesis employs the theory of higher education management on the basis of popularized education. Firstly, it illustrates higher education' s, types, modes and causes of debts. Then, it discusses the present situation, basis as well as the risks of management of universities' debts, thus building up a financial index system of them and putting forward a method of assessment. Finally, it provides the reasonable strategy of reducing the risk of managing in debts from the three aspects: the university, the government and the bank.