Research On The Supervision Of Local Government Financing Platforms

This article employs the case study,the literature review and the interview as the research method.Firstly,the article summarizes the local governments' specific practices and experiences in supervising local financing platforms;then it analyzes the problems and causes existing in this procedure;and finally the article recommends the suggestions and measures for local governments to improve its supervision of local financing platforms.The article states that there exist flaws in corporate governance structures,lack of standardized regulatory bodies.Some organizations operated on the financing platform fails to take independent civil liabilities and have non-standard operations in asset integration,or their funds are mainly from bank loans and issuance of bonds.There also exist unreasonable taxation systems,and lack of transparency in debt information from local government.The main reasons for the problems arising from the supervision of local governments in financing platforms are indicated as below: the platform organizations themselves are mostly funded by local finance,which mainly spends on the infrastructure construction.It is also due to the fact that the financial power and local authority does not match.Aiming at solving these problems,this article puts forward the corresponding regulatory measures.It primarily includes standardizing the corporate governance structure of platform companies,establishing specialized agencies for administration,setting up the accountability system;promoting the marketization of financing behavior,integrating local government financing platforms,and strengthening the overall administration of financing behaviors;diversifying financing methods and improving risk prevention of financial institutions.The article also emphasizes that it is vital to strengthen the reform of taxation system and legal protection,to improve information disclosure and establish alert mechanisms,and to promote government supervision measures such as the system of sinking funds.