N Bank Participated In PPP Industry Fund Risk Study

In recent years,many contradictions have been superposed and potential risks have been gradually emerged all over the word.The financial industry has been deveraging and the financial regulation has been tightened.The economy has entered a new normal.Under the impact of severe external environment,commercial banks have come into the predicament of sustained and steady development.On the other hand,PPP projects have sprung up all over the country,and social capital investment in the PPP mode has set off an upsurge.As a new financing method combining industry and finance,PPP industry fund is a very popular for investor.Undoubtedly,new opportunities have been given to commercial banks to attempt business innovation and transformation.Among the four major stages of fund-raising,investing,management and exit operations of PPP industry funds,commercial banks are able to participate in,providing ample space and opportunities for innovation in the transformation of their own businesses.Also,commercial banks can better devote themselves to areas such as infrastructure projects,state-owned enterprise reform and emerging industry development,and explore new profit growth point.This article mainly studies the risk of commercial banks participating in PPP industry fund.Taking urban tram as an example,on the basis of studying relevant literature theories,such as researching industrial funds and PPP mode,this paper introduces the selection of organizational form,trading structure establishment and exit mechanism of N bank participating in PPP industry fund.It concludes that N Bank intervenes through such major modes as investment and loan linkage,bank financing and asset securitization.During the operation of PPP industry funds,it finds out that there are three major risks that N bank will face,including lock of liquidity,inadequate management and low profit return.At the the end of this paper,it explores the reasons for the risks and put forward rational proposals.