A Study On The Credit Risk Control Of The Platforms For Government Financing

In response to international financial crisis, China took a series of policies to stimulate economic recovery. In the traction of these policies, local governments have established platforms for government financing relying on resource monopoly advantage and government credit. Infrastructure and urbanization driven by platforms for government financing have expanded domestic demand, but also contributed to the rapid growth of bank loans. However, the financing risk of local government fina- ncing has begun to attract the regulators. Local regulatory authorities strengthened the risk of government loan tips and management. In accordance with the repayment period of 3-5 years, in 2013 the local government revenue and expenditure will reach a stage of tension, that is the largest gap. We pay attention to the credit risk of platforms for governement financing in advance, which is undoubtedly prospective. From the perspective of bank risk management, if the bank can improve its ability to control risk in the follow-up risk management, such credit risk is still controllable.This article analyzes the situation of loans to the platforms for government financing and exisiting credit risk from the perspective of banking practice, and carries out the empirical research about the cause of credit risk by using the Logistic model. The research shows, local current GDP, the way of collateral, the profit pattern of company, the region impact on the credit of platforms for government financing. Based on the research, the article raises credit risk control recommendations.