The Research On Urban Infrastructure Clients Risk Management Of China Development Bank(Hunan)

Finance is the center of modern economy and policy bank is the important part of finance system in our country. China Development Bank (CDB) Hunan Branch is one of policy banks and supports the construction of national infrastructure,basic industries and pillar industries. In recently years,with the rapidly progress of urbanization in china,the loan for urban infrastructure has grown quickly in Hunan Branch. As the national government's key development finance institution,CDB Hunan Branch has diligently worked to support Hunan's urbanization and modernization.Credit risk is one of the most important risks faced by CDB Hunan Branch. Proposed urban construction projects have large proactive social and public welfare components , making them extremely popular in some circles. They are also noteworthy for huge capital costs,long construction periods,large start-up expenses and lengthy periods prior to physical construction. From a lender's standpoint,they can be a nightmare,with little demand flexibility and high potentials for cost overruns or over optimistically budgeted revenues. The urban construction clients have high risk for CDB Hunan Branch. Therefore,the research on credit risks of the clients is very necessary.This paper mainly focused on the systematic study of credit risk management on urban construction clients. The research included the form of the risks, the specialty of the risks,and the cause of the risks. We analyzed the practice of keeping away the risk of CDB Hunan Branch. Then we pointed out the problem of management existing in the bank. According as analysis of forming process and reason of the risk,the methods to prevent risk are given as a response. We established credit limit mode and risk prevention mechanism for reducing credit risks. In the end some suggestions are brought forward in the improvement of internal management in bank and social system.