Research On Risk Management Of Bank Loan Of University

The enrolment of higher education has been expanded sharply since the end of lastcentury in order to solve the economic and employment problems so that China’s highereducation has entered a period of rapid development. However, as we all know everythinghas two sides and the higher education is not an exception.So colleges and universities haveto face the unprecedented chance as well as the challenge of development. For example, thedemand of corresponding hardware and software is growing due to the rapid expansion ofschools. Consequently, it has became an emergency for colleges and universities to expandthe scale of themselves to meet the growing demands of staff and students.It is still hard tokeep up with the pace of the expansion of colleges and universities although the state fiscalinvestment in universities has been increased.Almost all of the colleges turn to the loan frombank to get enough money to fill the funding gap. On the other hand, in addition to repay theprincipal colleges and universities also have to pay the huge interest,thus may result in thedebt risk.In order to get rid of the debt crisis, some colleges have to reduce spending.What’sworse,some even sink into a vicious cycle of loan repayment and it has a negative impact onthe normal teaching and research activities.Therefore, it has very important practicalsignificance to find a way to not only solve the financial mess,but also to ensure the loan riskunder control.This article is based on the theory of the loan risk management by analysing one ofcolleages located in the northeast of china as a case and the main contents are as follows:Chapter1, introduction. Combing this paper’s background, research purpose andmeaning, discuss the main ideas and research methods. Also review the relevant literature.Chapter2, Summary of the bank loan risk management in colleges and universities.Firstly, the concept and the development process of risk and risk management theory has beenoverviewed. Secondly,based on the conception,main content and the basic idea,the collegebank loan risk theory is proposed as theoretical foundation for the later research.Chapter3, it is the status quo analysis of Chinese university loan. After analyzing thecurrent situation of Chinese college bank loan, reasons of formatting of college loan and riskas well as problems that the loan produced have been discussed.Chapter4, it is case study. Take the financial condition of one university in northern china as an example. According to the quantitative analysis of its financial figures in aconservative3years, be it2010,2011and2012, debt risk and operational risk of samplecollege have been evaluated with a in-depth exploration of measures to prevent and addresscollege loan risk.Chapter5, it is the measures to prevent and address university loan risk. In this paper,we are convinced that universities could be self-prevention by forming scientific guidingmethod spontaneously, implementing internal audit system, reinforcing the management offund loan and increasing income and reducing expenditure. Then, cooperate with otherexternal subjects such as government and bank. By allocating more fund on higher educationand enhancing intensify supervision, colleges can imply institutional innovation, examine andcontrol the whole process of college loan stringently and, in turn, defuse the risk of universityloan efficiently.Chapter6is epilog. After the conclusion of Chinese university loan managementresearch in this paper, a contribution to the healthy and steady development of Chinese highereducation is anticipated. At the same time, the innovations and shortages have been listed.