Study On Financial Risk Evaluation Of Land Banking

Land reserve system is a product from evolution and reform of land use system in our country, and it is also a kind of system innovation that the city government adapts to the. development of socialist market economy for allocating the land resources optimally. Since Shanghai firstly established the land reserve agency in 1996, land reserve system has developed vigorously. Ten years practice experience proves that land reserve system plays a positive role for optimizing the allocation of land resources, and efficiently using the available land, and improving the land utilization efficiency, and regulating the land market operation, and ensuring the land use planning and the urban planning, and accelerating the smooth development of the urban construction.As the scale of land that land reserve agency manages is increasingly large, the requirement of land reserve capital is increased unceasingly. Limited financial allocation and low returned ratio of land transferring fund from local government and finance department is already hard to satisfy the land reserve agency's capital requirement. Therefore, many land reserve agencies at present are mainly through the bank loan to maintain the normal operation of land reserves activities. Factors such as single financing channel, government intervention, long cycle to reserve land, bring higher financial risk to land banking.This paper firstly studies the concept and workflow of land reserve system, and then analyzes the operation procedure and character of the three current kinds of land reserve operation mode:market-oriented model, government's leading model, market mixed with government leading model. The concept of land banking financial risk is presented based on the research of land reserve risk theory. And a deep analysis on types and causes of land banking financial risk, which include financing risk, interest rate risk and default risk, is given. This paper refer enterprise financial evaluation index, selected ten financial indicators from land reserve agency's operation ability, solvency, earning and development ability to construct land reserve financial risk evaluation system.Analytic hierarchy process and fuzzy comprehensive evaluation method are used to evaluate the financial risk of a land banking organ, and the conclusion is that the financial risk degree is on medium level. And at last, based on the empirical research, some countermeasures to control land reserve financial risk are proposed:orientating the function correctly of land reserve system; expanding financing channel, and increasing returned ratio of land transferring fund; implementing entrepreneurial accounting methods; determining reasonable land banking scale; setting up a financial risk pre-warning mechanism.