Commercial Banks Participate In Risk And Prevention Research Of PPP Projects

With the transformation of China's economic development mode and the accelerated pace of urbanization,the demand for public infrastructure construction is expanding.Only by fiscal expenditure of the government,it is difficult to meet the needs of urban public infrastructure construction.The government needs to participate in the construction of public infrastructure through the introduction of social funds.The PPP model has became the main way to construction.As the main supplier of loan funds,commercial banks provide loans for various industries.With the reform of interest rate liberalization,deposit and loan spreads of commercial bank gradually reduced,which commercial banks need to broaden the financing channels and profit sources.the PPP project provide another way of loan funds to commercial banks.Since 2014,the development of PPP mode has been supported by a series of policies from government.At the same time,the commercial banks have been developing vigorously through the cooperation with the government and social capital for the infrastructure construction.The PPP project has witnessed vigorous development.However,as the number of PPP projects has increased significantly,commercial banks have increased the amount of loan year by year.And the amount of non-performing loans has also increased.The risk problem in the construction and operation of PPP projects has become increasingly prominent.At the end of November 2017,the Ministry of Finance issued "on the norms of government and social capital cooperation(PPP)Notice" integrated information platform project library management.Then,a large number of non-compliance of the PPP project s have been cleaned up,so before the fiery PPP market suddenly cooled,out of risk and regulatory considerations,the Commercial Bank of PPP project has become conservative.Therefore,basing on the analysis of the current situation of commercial banks participating in PPP projects,this article intensive study the risk and prevention problems of commercial banks in the PPP project.It has important theoretical and practical significance to achieve profitability under the premise of ensuring its safety.The commercial banks involved in the different stages from the PPP project financing model.Using research methods like case analysis and data analysis combine the domestic and foreign scholars for the study of commercial bank risk management in PPP project.Taking X bank's participation in H wastewater treatment project as an example,this paper deeply analyzes the risk problems of commercial banks participate in PPP projects.At the same time,in the research method,the article reflects the possible risk points through a large number of data by using the financial and non financial methods,combining with case analysis.The structure of this article is follow:the first chapter is the introduction,which mainly introduces the research background,purpose and significance.Then,this paper summarizes the research status from home to abroad,and puts forward the research innovation and shortcomings.The second chapter,based on the status and model of commercial banks participating in the PPP project,studies the risk points of commercial banks in different stages of the project.The third chapter introduces X bank's participation in H wastewater treatment project.By analyzing the financial data and non-financial data of the project,it points out the risk problems of commercial banks,which participate the project.The analysis of the fourth chapter is operation of PPP project risk management and prevention countermeasures when commercial banks participate in the construction.