Research On Risk Management Of Loan Financing Of Public High School

With rapidly increasing numbers of students in recent years,public high schools try to acquire the loan from commercial bank to resolve the development in higher education system in order to meet this need for huge amounts of fund caused by increase enrollment. However,the huge amounts of loan make the public high schools be in debt deeply and bring on financial risk.Consequently,the risk of financing on public high schools arisen from the non-performing loan from commercial bank tunas out a social problem.Based on this background above,the financing risk on public high schools is defined by this basic concept about financial risk.The viewpoint that the financing risk of public high schools is a kind of debt risk actually arisen from the non-performing loan from commercial bank is put forward,then the necessity on the loan from bank and a series of problems existed in the process of financing are probed into thoroughly.Meanwhile,some strategies avoiding the financing risk of public high school based on the problems existed in the process of loan from bank of public high school are put forward.To seek an effective method of comprehensively evaluating the risk of bank loan on public high school,a new theoretical model which can be used to evaluate the risk of bank loan of public high school synthetically has been established by combining the model of controlling and evaluating the risk on the scale of bank loan of public high school issued by the ministry of Education and the ministry of Finance with the model which is used to evaluate the financial risk of public high school synthetically by adopting AHP theory, the validity and availability of the new model have been validated further through the instantiation of the theoretical model.