A Research On The Early Warnings And Prevention Of Financial Risks By Bank Loaning In Collegial Running

Great changes have taken place in China's higher education in recent years. The increasing enrollment enables China's higher education to move from an elite education to a popular education. To meet the needs of rapid development many universities expand and rebuild their old campuses and build more new campuses. Consequently, these universities are in great need of money. On the other hand, education funds hold a rather small percentage in China's GDP and the increasing funds are for from enough to meet the need of these universities expansion. So bank loaning is the first choice. As every coin has two sides, so is bank loaning. It caused great financial risks while enhancing the universities and relieving the problem of money shortages. How to measure and avoid financial risks now has been a major concern of education management and financial authorities in universities. This paper is to discuss the appropriateness of bank loaning in universities from the perspective of risk control and prevention. It is also to put forward a financial risk assessment system, warning analysis and counter-measures, as well as some beneficial suggestions for local colleges to prevent financial risks brought by bank loaning.