Research On Risk Management Of Local Government Financing Platform In City

In recent years,China’s local government financing platform has achieved rapid development,effectively alleviating the problems of insufficient local financial resources and construction funds,greatly promoting the infrastructure construction and urbanization process,and playing a huge role in promoting local economic development.However,the rapid expansion of local government financing platforms has also been accompanied by problems such as heavy debt burden,inadequate operation and management,and insufficient liquidity.The related government guarantee violations,non-performing loans of financial institutions and other phenomena have also occurred from time to time.The risk of local government financing platform is not only a financial risk,but also a financial risk.If it is not handled in time,it may lay many hidden dangers for local economic security.As the country puts forward new requirements for the standardization and strict supervision of the operation of local government financing platforms,how to reasonably control the risks of local government financing platforms under the premise of continuously optimizing local financing conditions,so as to effectively resolve the hidden dangers of local financial risks,is a major practical issue worthy of in-depth study.Under this background,this paper deeply studies the risk of local government financing platforms in A city,a prefecture level city in the east coast of China,and actively explores effective risk management strategies,with a view to ensuring the healthy development of local government financing platforms,helping to resolve local financial risks,and promoting the sustainable development of regional economy,At the same time,it is expected to provide some reference for the risk research and risk management of local government financing platforms in the same type of regions.In this paper,firstly,the background,significance,status quo and methods of the research are described,and the core concepts and related theories involved in this paper are introduced to lay the foundation for the following research;Secondly,the development of A city’s local government financing platform is analyzed from the two aspects of the generation,operation background and operation status quo;Third,it clarifies the policy risk,liquidity risk,debt repayment risk,operation risk and management risk existing in the local government financing platform of City A,uses the fuzzy analytic hierarchy process to judge the risk situation of the local government financing platform of City A,and analyzes the risk causes.It is found that the risk causes mainly include unreasonable current financial system,debt management system defects,weak risk awareness,excessive administrative intervention Five factors of regulatory regulations and loopholes in regulatory mechanism;Fourth,analyze and learn from the risk management experience of local government financing platforms in Hefei,Shanghai,Tianjin and Zhenjiang,and summarize the universally applicable risk management paradigm of local government financing platforms;Fifthly,based on the above research,from the perspective of public management,propose countermeasures to improve the risk management of local government financing platforms in City A,and give detailed suggestions in terms of streamlining the relationship between government and enterprises,developing the business of local government financing platforms,resolving stock risks,strengthening debt control,and implementing the integration of local government financing platforms.