| The local financing platform was produced under the background of China’s specialnational conditions. As a new type of investment and financing system, it began in the1990s. After the2008financial crisis, the number of the local financing platform showed arapid development trend, both in quantity and in the scale of financing has reached ahistorical high. The local financing platform alleviates the contradiction between the centralgovernment and local governments in property rights and powers that do not match within acertain extent. Its strong financing capability promoted China’s infrastructure constructioneffectively and played an important role to cope with the international financial crisis. Bankloans as the main way of financing for local financing platform, which accounted for thevast majority of shares in its capital source. The local financing platform’s huge loans hasbrought risks to the financial system, especially the banking sector. The risks can not beignored. Especially after2011Yuntou debt and Shanghai City Investment credit default riskevents, the local financing platform loans moment was pushed to the forefront. After2012,the rapid decline in the solvency of the local government will undoubtedly further increasesthe risk of local financing platform loans. Under this background, the research oncommercial Banks how to guard against local financing platform loan risk becomes veryurgent and important.This paper focuses on the status of the commercial banks to local financing platformloans, Illustrates the commercial bank loans to local financing platform mainly exist policyvolatility risk, legal risk and solvency risk, liquidity risk and credit concentration risk, etc.Finally, on the basis of the analysis proved the risk, Put forward specific measures to dealwith the risk of local financing platform loans of commercial banks. In order to promote thecommercial banks to carry out a comprehensive risk management and sustainable development. |
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