Research On Risk Control Of Local Government Financing Platform Loan In City Commercial Banks

At present,China’s economic downward pressure has increased,and the country’s implementation of large-scale infrastructure construction has stimulated the economy to become a realistic choice.However,there is a significant gap in the investment funds required for local government funds and infrastructure construction under the traditional model operation.Therefore,through the e stablishment of the government the financing platform to obtain bank loan models has been widely used.Due to the choice of market opportunities and the local economy,the city commercial banks have a strong credit preference for financing platform projects in terms of business development,which inevitably leads to a high concentration of bank loans and a high concentration of bank loan customers.Bank risks have increased.In this context,strengthening the risk control of financing platform loans has become an important issue in the current risk management of urban commercial banks.This paper first expounds the relevant credit loan risk theory,and compares the financing platform loan risk measurement model.It is concluded that the analytic hierarchy process combining qualitative and quantitative is more suitable for measuring the risk of financing loans of city commercial banks.The risk of the financing platform loan of the city commercial bank mainly comes from the financing platform itself,the close relationship between the c ity commercial bank and the local government,and the tightening of national policies.Through on-the-spot investigation of a city commercial bank,the paper analyzes the risk characteristics of the current city commercial bank financing platform loan,the loan subject is inconsistent with the actual loan user,the platform multi-finance financing is excessive,the loan repayment source is unstable,and the information is asymmetric.Then,the risk model of the financing platform of the city commercial bank was carried out.The factors affecting the platform loan risk include the national economic and policy status,the solvency and willingness of the local government,the platform level and financial status,the interest rate of the project itself,the term and the source of repayment,etc.Risk assessment and measurement are carried out using actual data of a city commercial bank financing platform loan.Finally,it proposes relevant countermeasures and suggestions from the external supervision and the two levels of the city commercial bank to face the risk control of the financing platform of the city commercial bank.