A Study Of The Causes And Countermeasures Of Colleges And Universities Obligation Financing In China

With the higher education investment and financing system reform turning continuouslyand deeply, the financing modes of our colleges and universities are taking place huge change,the diversification trend of colleges and universities financing is getting evident. Enter 20centuries especially since 1998, the nation popularizes higher education, promotesaccelerating development of higher education, and carries out the expansion policy of collegesenrollment. Each college takes the chance in succession, extending teaching scale, workinghard for realization of college's supernormal and jumping development. At the same time, therapid development needs tremendous capital. For solving the contradiction of the colleges'huge fund demand and the limit of national public finance growth-appropriation, manycolleges and universities are taking advantages of obligation financing. Utilizing bank loanscan solve financial bottleneck problem, and improve schools' conditions. Meanwhile, it alsoprovided a good chance for commercial banks to expand investment scope and create newprofit growth point.However, obligation financing has the cost, colleges and universities are required therepayment of capital and interest. Colleges and universities are nonprofit organizations, ifthey loan blindly a huge sum of fund, they may will back up the heavy obligation burden, andcause various obligation-financing risks. In the long run, the action not only does harm to thedevelopment of the school, and also results in a huge sum of bad banking asset. Therefore,how guard against the colleges and universities obligation financing risks is an importanttopic to schools, banks, and the government.At the first, this text from the historical angle, investigates the change of financingmode of colleges and universities, analyzing the expansion of colleges' enrollment, anddemonstrates the necessity and the possibility of colleges and universities obligation financing.The second, according to the characteristics of obligation financing of our colleges anduniversities, author delicately analyses the basic type of school obligation financing risk, andfrom the micro and macro levels investigates the risk causes. Finally, from the colleges anduniversities angle, author puts forward the countermeasures on obligation financing risks, andgives the nation, the education administration supervisors and commercial banks somesuggestions.