The Case Study For Risk Management That Commercial Banks Participating In PPP Project

With the development of urbanization in China,the demand for urban public service facilities is even bigger than before.Due to the excessive debt balance and the government's strengthening of local government debt management and other factors,the local government,as a traditional public service provider,the new construction investment of public service facilities is not enough.Under this condition,the PPP mode has become an effective way to provide public services for the government,and also provides a new growth point for commercial banks' credit delivery.Compared to the traditional business,the PPP project loan is longer and more complex.Therefore,when the commercial banks to participate in the PPP project,how to identify and control the risk of PPP project financing has become an important issue that should be solved.This thesis mainly uses the methods of literature analysis,case study and other methods to analyze the main risks that commercial banks face in the PPP project,and on this basis,proposes the risk control suggestions for commercial banks when participated in PPP project financing.Firstly,this paper expounds and analyzes the research situation of PPP mode at home and abroad,introduces the basic theories of PPP definition,main operation mode and commercial bank risk management,and through combing and integrating related data,points out the opportunities and main risks when commercial banks participated in the PPP project.Secondly,this thesis taking the N bank participated in YC County living garbage incineration project as an example,from the project risk,the government risk,the bank internal risk and other risks,analyses the main risks faced that the N bank participates in the YC County solid waste incineration project financing business.Finally,the thesis proposes that commercial banks should strengthen risk prevention and control from below three aspects: strict project access,focus on government risk,and norm banks internal management.Hope this study can provide someuseful ideas and suggestions for the risk management when commercial banks participated in PPP projects.