Research On Local Financial Risk Problem In China

In recent years, China’s local fiscal risk issues become increasingly prominent, and it has become a local government to perform the functions of the government’s restriction factor, and therefore becomes a hot topic in financial circles research. This paper is based on the study of existing literature to fiscal situation in anhui province, then analyzing the cause of local fiscal risks in China. On the basis of comparative analysis of other countries’ experience in financial risk management, this paper puts forward some countermeasures to prevent and dissolve the local fiscal risks in China.This paper around the local financial risk prevention and resolve the theme, along the phenomenon description, analysis of causes and put forward the countermeasures of thinking, discusses the issue of local fiscal risks in China. Firstly, this paper gives theoretical analysis on the local finance risk, defines the concept of local finance risk, and analyzes the characteristics and forms of financial risk; Secondly, in anhui province as a example, describes the present situation of local finance risk, and then analyze the reasons for the formation of local fiscal risk. Again, this paper introduces some foreign countries effective measures of financial risk management, and respectively from the developed countries, developing countries and transition countries elaborates the three categories, the experience is summarized, points out the management of local fiscal risk in China. Finally, based on the analysis of local fiscal risk forms, explore the causes of local fiscal risk in financial risk management experience of other countries for reference, on the basis of proposed some effective countermeasures to prevent and dissolve the local fiscal risks:developing the local economy, the construction of local fiscal revenue system; Perfecting the financial management system; The transformation government function, regulate the behavior of local government, improve the local debt risk warning mechanism, risk prevention control of local public.