Research On Potential Unsystematic Risk Control Of Investment And Loan Linkage Business Of Banks In China

Supporting the development of science and technology SMEs in China vigorously,will become a new drive for China's economic development in a new era,and will help China's economy embark on a new stage.The investment and loan linkage business is a new mode of financing for Sci-tech SMEs in China.The launch of investment and loan linkage is not only beneficial to improve the financing difficulties of science and technology enterprises,but also helps the science and technology enterprises to start their own assistance.On the other hand,it is more conducive to China's banking industry.The profit model broadens the road and enhances the market competitiveness of various commercial banks.The linkage of investment and loan means that China's banking industry uses a new financing method-"loan + investment" or "debt + equity" to support the development of science and technology SMEs and provide financing for enterprises.Specifically,the bank cooperates with external venture capital institutions or domestic investment subsidiaries or overseas subsidiaries to provide loans to SMEs,and at the same time owns part of its equity,and provides financial services,fund settlement and other related financial services.Forming a new form of financing in which creditor's rights and equity coexist,can significantly improve the financing difficulties of science and technology SMEs,and give strong support to the development of SMEs.First of all,this paper summarizes the four main modes of operation of investment and loan linkage by summarizing the origin of investment and loan linkage and the development process in China,and combining the development status of China's business,and points out the necessity of investment and loan linkage in China.Secondly,it briefly summarizes the process of investment and loan linkage business of some representative banks in China,and analyzes the advanced foreign investment and loan linkage model and its risk control measures,laying the foundation for finding risks and proposing countermeasures.Furthermore,through the analysis of the operation of the above different modes,it is concluded that the potential unsystematic risks in investment and loan linkage business in China,it mainly include default risk,infectious risk,conflict of interest risk etc.Whileanalyzing the causes of various unsystematic risks.Finally,through the above-mentioned several unsystematic risks and their causes of China's investment and loan linkage,combined with China's current financial environment and the actual situation of commercial banks themselves,and drawing on the experience of the US “Silicon Valley Bank”,Correspondingly,risk control measures are recommended.