A Research On University Loan Risk And Its Control

Since universities enlarged their enrollment in 1999, the number of enrolled students has been increasing rapidly. In order to meet the rapidly expanding fund demand in universities'development and coalition, bank loan becomes an important fund source for the further development of universities, when financial fund input cannot be increased effectively, and there is not much space for the rising tuition. However, huge bank loan sets universities deep in debt, making financial risk prominent day by day. Therefore, university loan risk has become a social problem that people concern.Starting with the definition of risk, the thesis defines university loan risk, deeply analyzes the necessity of university loan as well as the influence of the current loan situation, and explores the cause of university loan risk from the aspects of universities, government and bank. In order to find an effective way to evaluate university loan risk and its control, the thesis takes a provincial university in Shandong as a case, and analyzes the appropriateness of university loan's scale and the standard adopted to control the risk effectively. The thesis determines the loan risk evaluation index with"the university bank loan limit control and evaluation model"published by ministry of education and ministry of finance, and decides the degree of loan risk. However, due to its limitation and illegibility, as well as its inability to take university's risk bearing capacity into account, it's necessary to select financial indexes which have great influence on loan risk. Therefore an early warning system which can adapt to the financial situation of universities is constructed to evaluate the risk. With this system, the thesis analyzes the eleven financial indexes of this university in the recent ten years from five aspects, and starting from the special accounting system of universities, evaluates the university's ability to pay, capital structure, the extent to which its own funds are used, university-enterprise's joint and several risk ability, to find out the real potential risk. Based on the above two standards, improvement suggestions are put forward as to the limitation of the loan limit model risk evaluation made by educational administrative departments. Meanwhile, the thesis evaluates financial risk in combination of the financial situation early warning system. The combination of the two can make the decision level of universities realize the possible risk and take into consideration the ability to take the risk, and therefore build a loan risk management consciousness, make plans for university's future development based on its actual repayment capacity, and determine its loan projects as well as an appropriate loan limit.Finally, drawing on the risk countermeasures of American college, the thesis provides precious experience for our country to perfect higher education financing mode. The thesis tries to discuss universities'loan risk countermeasures from three aspects-universities, government and bank, in hopes of finding a way to make universities to develop in a sustainable and healthy manner.