The Provincial Public Universities Liabilities Financing Risks

With the enrollment policy was implemented in 1999, universities have to take this opportunity to expand the scale of themselves, thus, promoting the requirements in higher education development of the whole society .Because provincial public universities have their own particularities, in order to resolve the contradiction between lack of funds, debt running turns to be an important feature of it. However, due to China's provincial management system of the lack of public higher education, and government policy and bank control mechanisms for the existence of such factors as inadequate, leading to the provincial public universities have liability risks. According to Statistical Yearbook of Education show that the vast majority of provincial public universities in China have entered the "Loan repayment" stage, most colleges and universities can not afford to repay huge loans, huge loans have been seriously affected the normal operation of provincial universities even affect the daily teaching activities, making the quality of education gradually decline. Excessive damage to the original balance of the funds, making the provincial universities fall into the trap of debt run up cycle, not only jeopardize the university's own development, for the banking sector resulting in huge non-performing assets. How to deal with provincial universities this predicament today, how can we reverse this situation of universities, which have a response to this, not just colleges and universities, banks, and even the Government is concerned about social problems. This article attempts to debt financing for the current provincial universities this particular situation, the warning level raised the risk, the combination of effective government, banks and universities make their own appropriate countermeasures, thus strengthening their own public universities of the provincial management, the implementation offers their support on government policies and the establishment of bank risk monitoring and control of early-warning mechanism, the effective regulation of public universities liability risk.