Credit Risk Management Of GY Urban Renewal Project

At present,there is downward pressure on the domestic macro economy,investment has become an important carriage to drive domestic economic growth.The significance of infrastructure investment’s pull on economic growth is far more pronounced when viewed through the lens of investment patterns;however,whether it can bring about high growth or not is still the key to sustained expansion.Since the epidemic,coupled with the strict control of local government debt risks and the continued constraints of structural deleveraging of monetary policy,infrastructure investment has changed from a lack of funds to a lack of projects,and the emergence of urban renewal can precisely fill the gap in infrastructure projects.As a result,urban renewal has gradually emerged and will rapidly become a hot area in 2021.It is without question that,regardless of how the credit system is altered,government business is a fundamental element of commercial banks’ credit assets.Urban renewal,as a novel advancement in government credit business collaboration,has been the main focus of commercial banks’ research.Among them,how commercial banks can effectively and accurately judge the credit risk of urban renewal has become an urgent task.Taking Bank A as an example,this paper summarizes the financial and non-financial indicators that best reflect the performance of GY urban renewal enterprises by combining the operational and financial conditions of urban renewal implementation entities in GY cities,then summarizes the risk factors affecting the GY urban renewal industry,and finally,summarizes the five primary indicators and 16 secondary indicators that best affect credit risk.In this paper,the hierarchical analysis method is chosen,and the indicator weights of the variables corresponding to the model are finally obtained by establishing the indicator system and its hierarchical structure,and then by calculating the indicator weights and other steps.A scorecard,based on weighted indicators,is constructed to facilitate daily operations,and the urban renewal industry’s final risk assessment model is eventually acquired.The urban renewal industry risk assessment model proposed in this paper can help Bank A to review this type of loans more accurately and efficiently,thus providing faster access to financing for high-quality urban renewal industry enterprises.In addition,this model also provides a new perspective on how urban commercial banks in China can effectively conduct credit business in emerging industries under the new economic environment.