An Empirical Study On Credit Risk Of Commercial Bank Financing Platform

Subprime mortgage crisis occurred in 2008 has been caused a huge impact to our country’s economy. In order to reverse the adverse situation, the Chinese government wanted to stimulate the economy via consumption, export and investment. In the investment area, one of the most proper way was urban infrastructure construction. Because of limited financial resources and unable to independent financing, the local government platform became an effective way for government financing. Later, as the economy of domestic rebounded, the demand of government financing expanded quickly and lead to expansion of local government platform. Due to the particularity of platform, there is always a confusion between local government debt and platform debt What’s more, the commercial bank often provide a convenient channel for government platform credit and exist the management deficiency. Therefore, as the scale of platform debt growing rapidly, there will be some risks from the management of bank credit.According to the data released from national audit office, by the end of 2013, the responsible for repayment of local government debt was 10.89 trillion yuan. Among them, the financing platform liable for repayment was 4.08 trillion yuan, accounting for 37% of the total amount of local government debt. The circumstance caused a huge credit risk for commercial bank. In order to manifest achievements in their official career, many officials blindly pursue an excessively high growth rate by urban infrastructure construction, however, the construction project can’t get timely support fund and often low yield rate. Accordingly, when platform can’t repay the principal and interest, they often use another debt to fill in the blanks. In such a malignant cycle, there will always be risks and crisis in payment of platform, and there will be more credit risks of bank.In this context, firstly, the theory and formation of commercial bank credit risk were summarized, including the management concept and content of commercial bank credit risk, measurement method and research model; Secondly, class for financing platform risk were analyzed particularly, including its background, credit scale, risk reasons and characteristics; Then in this paper, we used commercial bank data which from eastern, central and western areas as sample, and used the non-performing loans, financing platform loan ratio, return on equity ratio such as 5 indicators, and wanted to mainly study the financing platform for the internal relationship between loan ratio and non-performing loan ratio by establishing measurement regression model and using panel data and tried to reveal the influence from excessive debt of platform to commercial bank; Finally, on the basis of the empirical analysis of the financing platform, we planned to give some constructive suggestions from bank and local government to the local financing platform, just in order to prevent credit risk of commercial bank.