Research On The?risk Management Of Local Government Loan In Pingchang Branch Of Jilin Bank

With the expansion of urbanization construction and the progress of infrastructure construction throughout the country,the financing risks of local governments have gradually emerged.The policy side continues to reiterate that local governments regulate borrowing within the debt limit and prohibit all forms of illegal borrowing guarantees.Under such circumstances,the development of government loans of Jilin Bank Pingchang Sub-branch has encountered unprecedented difficulties,and at the same time,there are also many problems in government loan risk management.The purpose of this study is to study the risk management of government loans of Pingchang Sub-branch of Jilin Bank and find the causes of the problems,so as to find solutions to the problems of government loan management of Pingchang Sub-branch of Jilin Bank,and then reduce the risk of overdue government loans.Based on the theory of promotion incentives for local officials,local competition theory,public product financing theory,and comprehensive risk management theory.This article explains why local government investment and financing infrastructure construction and how commercial banks conduct government loan risk management.This article analyzes in detail the current development of government loan business of Jilin Bank Pingchang Sub-branch,and raises the issue of government loan management,such as excessive concentration of government loan business of Jilin Bank Pingchang Sub-branch,inaccurate repayment sources,and operation of sub-credit staff.The risks are high,and there is no policy for government loan business.The reasons for the above problems are analyzed in the article,which is mainly attributed to the particularity of the major customer groups of the Jilin Bank Pingchang Sub-branch,which results in the inability of the sub-branch to exhibit loans to the public loan industry.The "separation of loan and loan" review system has reduced the understanding of professional credit approvers to the loan business to a certain extent,resulting in a lack of information and limiting the use of professional risk control levels.At the same time,various national management policies have been issued frequently,and head office policy guidelines have been issued.Unclear,while restricting the financing channels of local government financing platforms,it also provides obstacles for commercial banks to handle government loan business legally and in compliance.In order to solve the existing problems,this paper specifically optimizes the risk management scheme of government loan business of Jilin Bank Pingchang Sub-Branch from the perspectives of optimizing loan business structure,selecting government loan projects,improving business processing mechanisms,and innovating business models.Regarding the structure of government loan business,the handling of government loan business should provide the government financing platform with daily warnings on its financial indicators,strengthen guarantee capabilities,and prevent government loan credit lines from becoming too large.Commercial bank credit funds should have more specialized entities economic development.In terms of selecting and selecting government loan projects,Jilin Bank Pingchang Sub-branch should select projects with relatively controllable risks and cash flow for credit,support the market-oriented transformation of platform companies,and handle credit for market-oriented platform companies with their own operations and income.In terms of improving the business handling mechanism,credit reviewers should personally go deep into the enterprise,understand the business,and give full play to the appraisers' risk discovery and control capabilities;Strengthen the function of the risk management department to truly play its role in risk management;Management of loans,loans during and after loans to prevent operational risks;Finally,strengthening the risk control capabilities of credit personnel is fundamental to controlling the risk of local government loans,and improving the risk detection and prevention capabilities of credit personnel can prevent local government.The occurrence of loan overdue events.Finally,in terms of innovative business models,Jilin Bank Pingchang Sub-Branch should be clearly policy-oriented and promote a new model of risk-controllable business cooperation in a legal and compliant situation.