Research Local Financing Platform For Credit Risk Management

Under the rapid economic development of the contemporary financial environment, enterprises continue to expand the financing not only achieve economies of scale, the government also had to join financing torrent, such ability to local infrastructure up to meet the development of economy. With the implementation of proactive fiscal policy and moderately loose monetary policy, our country all levels of government investment and financing platform for the loan, there is rapid development, has become the main carrier of the local government financing in our country. Local financing platform to raise money for local economic construction, in tackling the international financial crisis has played an important role, but at the same time also appeared such as the booming of local government investment and financing platform, debt scale is growing too fast, we in Hohhot government financing platform for the special case, by case analysis to illustrate the positive significance of local financing platform and existing and increasingly exposed, for example:loan quality and recycling is too dependent on limited local finance, once a tighter fiscal situation of local government, its quality has a sharp deterioration in May; Investment and financing information opaque and loan and investment project cash flow mismatch which makes commercial Banks is unable to correctly estimate risk of loans; In addition, the platform loans to investment and finance may be deviation will cause the expansion of fiscal deficit or inflation.For Inner Mongolia Hohhot local financing platform, set up a loan risk management framework is very necessary. In reference to the international local government financing platform, on the basis of risk management, through to the Hohhot four government investments and financing of the company’s positive significance and related risk research, the purpose is to find out the solution for the loan risk, to improve the financial environment, promote economic growth, and improve the local government financing platform.