Analysis Response To Bank Loan Risk In Project Financing In China

Project Finance.as a new financing tool.was emerged in the international capital markets in 1970s and has been developed into an efficient wide-used financing method in the infrastructure construction. In the mid of 1980s, China introduced project finance for the first time .As Chinese capital market opened more widely to the outside world.Project Finance gains rapid development and plays important roles in infrastructure financing.As an important component of the project financing, Bank loans have played a decisive role in the project financing. Through participation in the entire process of project financing, bank can be a comprehensive analysis of project finance risks. Through well-designed risk-sharing mechanisms, banks can effectively ensure the smooth progress of construction projects and promote the rapid and healthy development of national economy. Through a variety of effective risk prevention measures, bank can avoid the maximum decrease in the quality of project assets, and comprehensively improve their own quality as a whole, for our Bank and the International Bank advanced a comprehensive competition lay a solid foundation.The paper is divided into five chapters : Chapter one is the introduction, which states the current development of domestic and international project finance and bank loans for project financing or significance. From the Chapter two for the basic features of project financing, analysis of the points of project financing, as well as how to control these risks point, and then from the perspective of how to face the bank loan risks. Chapter three is analysis to prevent risks of foreign banks in the project finance practice. Chapter four is analysis the specific cases project of China Development Bank and sum up experiences and lessons. Chapter five of my current project finance banks in the actual situation from their own practical work to lower the bank risks project finance recommend measures : First, we should improve and upgrade the current Bank project appraisal methods, and use the entire process of project finance in full the use of cash flow analysis and management techniques. Second, we should attach great importance to the credit structure, innovate and improve credit structure, and establish a sound credit increased level mechanism for different credit risks through the establishment of appropriate control mechanisms; Third ,we should enhance project capacity and credit rating company credit further projects owing on the loan guarantee the reliability and security of the cash flow.