Study On The Risk Management Of Local Government Financing Platform Based On Financial Credit

The local government financing platform is the growing innovative enterprise with the obvious government backgrounds, which is established under the strict control of central government policy and the constraints of unsound legal environment and in the loose market and credit conditions not perfectly. It is also set up in the contradiction of the local government with fewer financial powers but with much more projects to deal with.Since2008, with the change of local government function, the local government financing platform played an important practical role in the reform and innovation of the local government investment and financing mechanism. At the same time, the local governments, which raise money for the local economy and the social development through the debt financing, made a significant contribution to strengthen the infrastructure construction and to deal with the international financial crisis. However, the local government implicit debt risk increases gradually, because of no standardized operations in the process of investment and financing, the excessive expansion of debt, the improper management of financing funds uses and the information disclosure mechanism lack of transparent.From the point of bank financing risk management of local government financing platform, in this article the current situation of local government financing in China is present and the financing experiences of foreign local governments are learnt. In terms of policy environment, legal environment, market environment and credit environment, the current problems of domestic local government financing and the causes are analyzed. The analysis of these problems and causes is linked with the actual financing situation for the local government platforms of**branch of**bank and also combined with the macro-polices and with the internal risk management of bank. Lastly, the countermeasures and suggestions are given to solve these problems, so that the local government financing platforms develop sustainably to contribute more for the local economy.