The Research On Small Hydropower Project Loan Risk Management Basic On FAHP

At present, changing the model of our country’s economy development has become a new economic development strategy, a new theme and new tasks. The development of small hydropower projects, can not do without the support of bank credit funds. As the construction projects for the country’s major banks to provide loans, China Construction Bank provide loans for small hydropower projects the number is increasing. The management of credit risk of loans of small hydropower projects has become the current management of China Construction Bank in a regular sexual.This article proceed step by step analysis of the various stages of small hydropower project loans credit risk according the commercial bank’s risk management process. The commercial bank’s risk management process contains four main steps which are risk identification, risk measurement, risk monitoring and risk control. The article uses FAHP method to propose a investment risk model analysis of a small hydropower project in the light of credit risk management theory, according with its many years of contact with the water industry experience. Finally, The article study a case on risk management of yu long yan small hydropower project.This article concludes as follows: The main risk of small hydropower project loans is credit risk.The credit risk mainly from its three aspects: the default risk of those loans companies,the project risk, the risk of loans; FAHP has great practical value, commercial banks can be introduced into the construction of small hydropower projects on the loan decision-making process; Contrary to the risk of small hydropower projects, this article proposed several aspects of risk control measures, including quota management, loan approval, post-loan management.