Expanding Domestic Demand Under The Bank Credit Policy Research For Government Investment And Financing Platform

This paper mainly studied the matters need attention, the credit policy and control of risk in the Government investment and financing platform. According to relevant statistics, As of the end of sixth month,2009, investment and financing platform for the balance of loans of the national Government at all levels reached a record 5.26 trillion, increased by 4.2 times for the same period compared with the end of 2008, was 1.55 times the national fiscal revenue. It not only increased the invisible local government’s debt burden, but also formed a significant pressure on the operational risks of commercial banks. Therefore, it is of great theoretical and practical significance, for long-term development of China’s commercial banks and promotion of national scientific development, to study the credit policy and control of risk in the Government investment and financing platform for attention.This paper stands on the position of commercial banks, from the angle of the credit policy formulation and control of risk, investigated and described the methods and rules for doing credit business with the government investment and financing platform type customer. So under the current complicated background, make it clear for commercial banks to do what, how to do, deal with which kind of problem. On the one hand to ensure the safety of bank credit funds and profitability, on the other hand to support actively the government to expand domestic demand, do macroeconomic adjustment, and promote steady and rapid development.This paper will expand discussion and research in the following four aspects:the first part mainly introduces the background, motivation and significance of the research; the second part mainly investigates on the Government investment and financing platform company’s definition, characteristics and the relationship with the banks; the third part mainly investigates the main business model, financial needs and credit risk of Government investment and financing platform company; the fourth part mainly investigates the matters need attention of the credit policy and control of risk in the Government investment and financing platform.The innovation arguments in this paper:1.The commercial banks should manage the governmental investment and financing platform based on the model of management of Group clients, in other words, adopt the policy of the overall credit on the governmental investment and financing platform.2. The commercial banks should follow the principles of commercial and differentiation, treat differently the governmental investment and financing platform. That is, to the governmental investment and financing platform, the commercial banks need to adapt the polices of proportion of credit(provincial, city and country), trade credit and customer credit, based on national trade policy and their own need of adjusting their credit structure.3. The commercial banks should strengthen actively the financial service for the high-end investment and financing platform customers.4.The commercial banks should increase the effort to quit the high-risk investment and financing platform in effective ways, such as innovation of financing products.