The Strategic Analysis Of Providing Loans To Colleges And Universities For Commercial Banks

Colleges and universities applying for bank financing is no longer a fresh topic. Almost each commercial bank in China was involved in cooperation between banks and colleges and universities. Most colleges and universities are listed as high-end clients. But we should realize some commercial banks lack judging standards and reference to the construction projects of colleges and universities. The existing facts that some commercial banks providing too much loans to these projects enlarge hidden risk to the bank finance property.This thesis firstly analyzes the necessity for this kind of cooperation, including the necessity for colleges and universities to invest infrastructure, the features and scopes of these construction projects, the necessity and feasibility of financial capital to take play in the construction of colleges and universities.Then, this thesis analyzes how to control the financing scale of the construction projects and risk control points for commercial banks, from the income and expenditure analysis of colleges and universities, proceeding to establish a reasonable model to decide the financing scale, then introduce two examples as a judgment of the model, also presenting the methods to control the financing scale and key points of project evaluation. At last, this thesis analyzes in detail both the major risks of providing loans to the construction projects of colleges and universities and the preventive measures. Then the author combines with the knowledge achieved from MBA courses in Shanghai Jiaotong University to advance some ideas about financial products innovation, trying to broaden the cooperation between banks and colleges and universities and create new the ways for financial capital to support the development of the colleges and universities.This thesis summarizes the practicing experience of many years, presents some financing proposals to colleges and universities for commercial banks, and sounds the alarm to enhance the self-awareness of risk prevention in future work.