Government Loan Risk And Risk Control Research

Local government financing Platform Co is a local government funded, devoted to the special nature of the company from the commercial bank financing. In this paper, through the empirical analysis to study how D branch based on the effective management of the local government financing platform loan risk, to meet the needs of harmonious and sustainable development of local financing Platform Co, health, and D branch of the government loan risk control recommendations for improvement.With the country in stimulating domestic demand, the gradual deepening of the economic stimulus plan implemented, local governments in China’s economic development is facing new opportunities and challenges, one of hundreds of millions, billions of construction projects have been launched, and obtained through traditional means limited financial development funds can not meet the current needs of the local government investment projects. Meanwhile, according to the relevant state laws and regulations, local government authorities and undertakings related national institutions can not obtain funds directly from financial markets. Thus, a class organized by the local government-funded, dedicated to financing from commercial banks, the special nature of the company, namely local government financing platform companies, born out. In this context, from the perspective of commercial banks, how to promote and meet local financing platform for the company healthy, coordinated and sustainable development, how our local government financing platform to conduct a comprehensive risk management has become very urgent and important.Firstly, a lot of reading in the relevant literature, based on the Industrial and Commercial Bank of China’s basic situation and D branches, operating characteristics, the structure of the credit assets of all aspects of presentation, select the D branch of power facilities, infrastructure and rail traffic zone urban construction of three typical local government financing platform companies, through comparative analysis of the case, from the inductive customers various types of government financing platform convergence features, including "single way of loan guarantees and long-term loans based","project loan has a strong the government will "," fiscal transparency "method of repayment will finance and banking risks were bundled and so on. In the following paper, analyze and summarize these risks and risk forming common cause, and made himself right business risks and risk control of the specific recommendations, including its two main aspects of internal and external control measures, including the establishment of commercial banks outside the local government investment and financing platform for total control and early warning mechanisms to establish local governments and commercial banks and avoidance of risk-sharing mechanisms, the establishment of local government investment and financing mechanism for debt repayment guarantee from the bank’s own internal point of view, to establish a comprehensive risk management system to start, conduct local government financing platform risk limit management, establishment of loan concentration risk warning, and the implementation of risk-based centralized management portfolio.