| Colleges and universities have made rapid progress in collecting money to run the school, to improve the working conditions and the whole image of the school, as well as to meet the demands of staff and graduates. However, the number of new graduates is decreasing year by year, which means the colleges and universities are making less and less money, while they have to pay more and more loans. We can say, if banks offer loans to colleges and univeristies in the future, banks will take a risk. Then what caused the risk? How does it present? What should we do to prevent it?The paper tells of the main forms of potential loan risks by analysing the reasons why colleges and universities take more and more loans. It also analyses the causes of the risk using loose budget theory and property right theory. It is government's allowing colleges and universities taking more and more loans that caused the risk. we should take actions to avoid it: government should invest more money to education; also, we should reform the property right of colleges and universities and have firm control over colleges and universities. The paper also offers some measures on how to avoid the risks in view of colleges, unvisities or government.Chapter 1 of the paper talks about the meaning of the topic and the thinking approach to it. Chapter 2 analyses the risk of colleges and universities taking loans to run a school from eight aspects. Chapter 3 tells of the reasons why colleges and universities take more and more loans. Chapter 4 is about what we can do to control the risk. At the end of thepaper, the author draws a conculsion and offers to do further study.The distinguishing features of the paper are: analysing the causes of the risk thatcolleges and universities taking loans to run a school by using economic theories such as loose budget theory and property right theory, and offering some measures on how to limit the scale of the loans by drawing lessons from how banks evaluate enterprises. |
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