Research On The Improvement Of Credit Risk Management For PPP Projects Of WH Bank

Since the founding of new China,the Chinese government has been in a"monopoly" position in the field of providing of public goods for a long time,but with the sustainable development of China's economy,the demand for public goods is also growing,because of the strong non-competitive and non-exclusive characteristics of income public products,the growth in demand for public goods means the increase of government expenditure responsibility,which led to the government debt burden is bigger and bigger.In order to release the financial pressure of local governments,the state council explicitly proposed for the first time to "promoting the use of cooperation mode between government and social capital",namely PPP mode in 2014.After nearly five years of development,PPP mode has gradually become a major channel for]ocal governments to provide public services.Major commercial Banks in China are also actively exploring business opportunities,directly participating in the PPP model as one of the social capital partners,or providing financing services for social capital partners and project companies.In the actual operation process,relative to other big state-owned banks or financial background powerful large commercial Banks,city commercial banks have less obvious advantages in the process of participating in the PPP project,which means they should pay more attention to balance risk and return into participation in the PPP project,prudent management perspective,take effective strategy to identify some risks that exist in the PPP mode.Based on this background,this paper focuses on the research of PPP credit risk management,summarizes the related literatures on PPP concepts and models domestically and abroad,and elaborates on public product theory,PPP model risk sharing mechanism,and risk management theory of commercial banks.The theoretical basis is the foundation of this article.Based on the research of these documents,this article uses analysis methods,theoretical analysis and other methods to analyze the PPP credit status of WH Bank and the existing problems of current risk management and consider the risk management of current PPP projects of WH Bank.There are three main problems.The first is the risks from the project itself,including the policy risks throughout the project and the performance risks of the various participants of the project,as well as the ongoing operations,handover risks or other risks in the later stages of the project,and the second is the WH Bank.Internal management risks,including the absence of a professional approval team,the credit approval process is not perfect,the PPP authorization risk identification mechanism is insufficient.The third is the PPP financing model is too simple.The main reasons for these problems include insufficient introduction and training of specialized talents,the credit policy has not been updated in a timely manner,insufficient attention to financing product innovation,and excessive reliance on the approval ability of the final approver.In view of the above problems,this paper combines the actual situation of WH Bank,and designs a PPP project credit risk control mechanism improvement plan including a package of improvement measures such as strengthening the whole process risk management of PPP project credit and implements a set of improved implementation plans and implementation evaluation plan.This has strengthened the PPP credit risk control and comprehensive risk management for the bank and provided a decisive help to maintain the health of the credit business,and initially achieved the research objectives.