Angnan Normal College Debt Risk Prevention And Solving The Problem

With the expansion of college enrollment, lack of funds restricted the rapid development of colleges and universities, the development of higher education in debt charged into a universal phenomenon. Ordinary higher education transits from elite education to popular education in China. On the one hand, the free financial resource has been unable to satisfy the need of colleges’ fast development. On the other hand, because the growth of tuition is limited, donation from schoolfellows and units is insufficient, the financing channel of universities is extremely limited. So mostly universities and colleges adopted raising loan through financial capital market and it is proved effective.But at the same time, every evidences show that among the new round of construction standard arises, which makes the loan scale expand too quickly and the debt burden of colleges become too heavy. In a word, colleges are confronting an unexpected debt crisis. How to forecast, prevent and control debt risk of colleges in order to maintain financial safety and social stability has become an urgent task to government education department, financial organization, banks, colleges themselves and the whole society.To the debt risk which universities of our country face at present, this thesis proposes an index system of suggestions to keep away and dispel the liabilities risk. Firstly, this paper introduces cash current concept, and builds up a set of index system upon colleages debt risk which includes index of repaying ability, performance, paying ability to prevent the risk. At the same time, this research ascertains the critical value, transforms each early warning target as the index, and endues with the weight then constructs the debt risk early warning composite index model of universities. Secondly, after appraising the loan amount control and risk evaluation model of colleges which is designed by government education department and financial organization, this research devises a new model to control the debt scale of these colleges and universities. Finally, the solution and proposal have been provided to prevent and control the debt risk through three respects including government, colleges and banks. For example, innovate the system of now, construct risk early warning mechanism, enhance the management of colleges’ loan, excavate the potential of financing and so on.