The Reserch On Government Financing Platform Credit Risk Of China Construction Bank Branches In Hunan Province

Government financing platform, as the loans subject of the local infrastructure construction and urban construction, play a positive role in the local economic development. Since2008, the national "four trillion" surge in investment led to the local government’ huge debt and the explosive development of the platform size, which raises levels of regulators and the industry’concerns. The government regard the credit risk of platform as one of the three major risks as commercial banks are facing.In this paper, the research aim at, based on the home and abroad’related research, research the credit risk of the platform of Hunan Branch of China Construction Bank. The paper investigate the reality of credit situation of Hunan Branch of China Construction Bank, then use Logistic model to analysis the platform customers empirical of the bank. Summary of above, the paper propose some suggestions and recommendations to control the credit risk of Hunan Branch of China Construction Bank.Firstly, the descriptive statistical analysis of data, obtained in Hunan Branch of China Construction Bank, get the ideas that there are several typical problems in this bank:government financing platform for high debt ratio,financing platforms illegal diversion of funds lend each other money, debt over-reliance on financial income and the appreciation of land, illegal guarantees of platform loans. Then, according to the investigator of credit situation of Hunan Branch of China Construction Bank, the paper conclude the factors into four dimensions of risk factors:national policy, local economy and government financial strength, government financing platform for their own situation, government financing platform for the quality of loans. Third, from the four dimensions the paper select8indicators(the local GDP, platform-level, corporate profit model, way of security, and the amount of loan, current ratio, return on net assets and asset-liability ratio) for Logistic model in the chapter4. Conclude that, the local GDP, platform level, way of security, and the amount of loan, the net return on assets and asset-liability ratio have significant effect on the bank’s government financing platform credit risk. And this chapter has a good measure of the predictive model, Finally, combining the full text the paper put forward suggestions on the Hunan Construction Bank to strengthen credit risk management platform. We may start from the following three financing platform for this bank to strengthen the control and management of credit risk:with "differentiation" as the basic principle, with the establishment of imformation disclosure mechanisms as method, with the perfect of the Loan three check system for the foothold.