Research Of The Government Financing Platform Risk Management

The government financing platform loans sustainable growth since the second half of 2009 in China. The government financing platform of high safety and great yields, became a key goal of financial institutions to chase. At the same time, because the government has expanded financing platform financing a large mount, operating procedures and concentration of the high risk of financial market. The government investment risk platform, apparently the risk management of the feasibility and operability quickly put on the agenda.According to our government financing platform of risk management, this article adopts the method of normative research, from the government financing platform development, connotation, main mode and risk, analyses the characteristics of the present situation of the management of risk financing platform and its cause, and focus on the risk of financing platform characteristics are discussed. Finally, the risk control measures are put forward from two aspects of government and bank.The main ideas and main content as follows:Government financing platform, refers to the local governments at different levels in the financing for business purposes, the company mainly include different types of urban construction, the urban development, urban construction investing such enterprises and institutional company assets. It's financing business income, mainly in charge of public facilities such as reimbursement and financing source.Firstly, the development of the government financing platform includes exploration stage,extend stage and the mature stage. At present, the government financing platform system has been formed basically. The symbol of corporate governance structure is established. This system has become to the very way of financing by the government. However, there is some disadvantages of this system Firstly, the show is not formed diversified financing channels. The risks are all transferred to the banks. Secondly, the main bearing urban construction investing and financing task enormous pressure.Thirdly, relatively concentrated, structural risk investment and financing capability, high asset-liability ratio gradually decrease. Fourthly, financing structure is unreasonable which is lacking of industrial development support. Lastly, this system is taking more concern to the city and less concern to the countryside financial demand.Moreover, as the main channel of the government financing, the system is mainly divided into public infrastructure construction, industrial and agricultural policy support fund investment company three financing mode. Moreover, three types of financing mode are divided into BOT,TOT and PPP and so on. It has different condition,advantages and disadvantages.Thirdly, under the current government financing platform mode, China manage loan risk mainly from four directions, financing mode, loan subject, the commitment shall run structure. However, China's government financing platform still presents main responsibility fuzzy, corporate governance, imperfect, the formalities of financing, local fiscal soundness excessive debt, and reimbursement policy risk source instability, post-loan more difficult supervision, information asymmetry risks. The formation and development of financing platform, has the certain objective necessity. However, the risk of rapid together is mainly composed of the following three aspects:One is the local municipal capital demand is high, meanwhile the financial capital is too weak. Anther one is the long time commercial bank loans with very short time financing deposit; borrow short platform, lastly, it is too wide of positioning the platform company and lacking of managing structure.Eventually, the author mentioned seven methods to reduce the risk government financing platform. One is the standard platform, the reorganization of positioning, second is to allow the government debt, market restraint, Third is to strengthen communication exchange, and risk prevention all together, Fourth is more prudent risk assessment, Fifth is a securitization of credit risk, dissolve, Sixth is to strengthen communication and feedback, close relationship between government and silver, Seventh is strictly the admittance threshold, making the right decision of incremental loans.This innovation of this issue is mainly embodied in this perspective has a novelty and reality of Chinese government, the financing platform of risk management theory, as a social issues, this paper will work closely with the practical theory, combined with certain novelty and reality. Anther one is content with certain comprehensiveness and pragmatic. This paper does not come from the theory of simple introduction risk identification method, but closely combining government financing platform, the risk characteristics and genetic analysis, pragmatic, This paper is not only confined financing platform, but also comprehensively analysis this system from commercial Banks point of view.The mainly embodies of this paper is because of the one-sided view in the deficiency in certain aspect, the structure, view and logical deduction is not very exactly. At the same time, the government financing platform risk management issues involved, the link of coverage, the author does not cover all the links and consider all the factors of government financing platform, domestic specialized study is less. It is difficult to obtain the comprehensive information and reference. Therefore, the point of this issue is not comprehensive and mature.