Research On The Risk And Preventive Measures Of Commercial Banks In PPP Projects

As a new model of providing public infrastructure,the essence of the PPP model is that the government borrows private capital for infrastructure construction.The PPP model was first produced in the United Kingdom and was favored by countries all over the world.China also began experimenting with the PPP model in 2013.It perfectly solved the financing difficulties faced by traditional government-organized infrastructure,the government's financial pressure,low efficiency,and risk concentration.Such issues as fully mobilizing private capital to participate in infrastructure construction have important implications for alleviating government fiscal pressures,diversifying risks,and improving the construction of China's capital market.The rapid development of the PPP model is inseparable from the financial support.The commercial bank,as the largest fund provider,occupies an important position in the PPP model.The PPP model is a rare opportunity for commercial banks.Banks have a very low cost of capital,which is very conducive to occupying the PPP financing market.With PPP,they can raise private funds more efficiently and allocate free assets more efficiently.However,the most important thing is that banks must do a good job in risk management in the process of participating in PPP projects.Any problems in this project will cause commercial banks to face enormous risks.Therefore,commercial banks should do a good job in the prevention and control of risks for the main participants in the project.The data in the PPP project library of the Ministry of Finance shows that the success rate of PPP projects in China is now less than 20%.Therefore,how commercial banks do the work of preventing and controlling risks in PPP projects has become an issue that needs urgent attention.This article describes the development status and existing problems of PPP projects in China,analyzes the role of commercial banks in PPP projects and their advantages in participating in PPP projects,and highlights the main risks of commercial banks participating in PPP projects,and combines them.China National Stadium "Bird's Nest" PPP project analysis Banks may participate in PPP projects from the project itself,the project company,the government and the bank's internal risk.Finally,based on the experience of foreign commercial banks participating in the PPP project risk prevention experience,based on the proposed commercial bank Participate in PPP project risk prevention counter measures.Commercial banks can only succeed in participating in PPP projects and achieve the desired results only by carefully selecting quality projects,carefully selecting project companies,guarding against policy risks,and strengthening the bank's own risk management.