Commercial Banks To Issue Government Class Risk Analysis Of Investment And Financing Platform Loans

Credit loans are the main business in the commercial bank. With the continuous deepening of China's financial reform, the business of credit loans have developed very rapidly in recent years, especially after November 2008. In order to cope with the global financial crisis, China has pursued an active fiscal policy and moderately loose monetary policy. Then the business of credit loans grew more rapidly. The local government investment and financing platform is the main body, which is the most active and most eye-catching in credit loans of commercial bank. As the fiscal policy and monetary policy has been implemented, the local government investment and financing platform played an important role in infrastructure, while it also brought a certain amount of risk to the commercial bank and the relevant government departments.This paper firstly introduces China's financial environment and the content and status of the investment and financing platform. Then, it gives the current conditions of credit loans and the risks of commercial banks. After that, the paper analysises how the local government investment and financing platform affect the risks of commercial banks, especially in Chengdu, Sichuan Province. Lastly, it proposes the measures to lower the risks between the commercial banks and investment and financing platform, in order to promote the healthy development of China's economy.