China Development Bank, Guangdong Branch Of National Student Loan Risk Management Analysis

National student loan, developing in China less than20years, is a project that will benefit to the future of China. Due to the political feature of project, national student loan in China is not a natural achievement of financial market development. Then, the credit risk problem had been discovered during the progress. Therefore, the research of the risk management is meaningful.Excepting the introduction, this research concludes three parts.In the first part, relevant theory of risk management and the successful experience of foreign countries have been introduced. To be more specific, first, the concept of the national student loan and its characteristics are defined. Then the theory of moral hazard is applied to analyzing credit risk mechanism of national student loan, and the credit risk management process and strategy have been mentioned. Finally, the successful experiences of the national student loan in the United States, in Australia, and in Japan have been introduced.In the second part, the chapters of three to six are the case analysis of the National Student Loan risk management process in Guangdong Branch of the China Development Bank, which is key part of the research. In the chapter3, the history of the development of National Student Loan project in Guangdong Branch of China Development Bank has been introduced. Based on the theory of risk identification and the current situation of Guangdong Branch of China Development Bank, the process of risk identification is proposed. In the chapter four, synthetic evaluation model of student credit risk has been developed on the theoretical foundation of fuzzy evaluation method, which classified the factors of credit risk evaluation into three levels and18categories. Then, the model has been examined with the sample of random selection, while the result is provided for the China Development Bank. In the chapter five, based on the conclusion of risk identification and risk evaluation, the risk response strategies for each step in the analysis of production process have been carried out. It is considered that measures to reduce the risks of national student loan should be followed throughout the three phases of before-loan, in-loan, and after-loan. Then risk reduction measures of each corresponding the phases are proposed. The risk prevention work before student loan issued mainly includes strict qualification examination of each level, detailed information of a student and family, promotion of loan advocacy work. In-loan measures to reduce the risks of national student loan conclude credit education and the building of credit record file. Measures of after-loan conclude improving the student personal credit record files, developing a repayment plan and supervising students’ repayment. In the chapter six, from the point view of Guangdong Branch of China Development Bank, the measurement of risk management and monitoring to national student loan have been developed. The main content of the chapter can be divided into four parts which are establishment and improvement of students’ personal credit information inquiry system, the perfection of the legal system of national student loan, the perfection of operation process and development of risk-sharing mechanisms of national student loan.The third part is the conclusion and the prospect of the research.The features and innovations of the research conclude that, the research is based on the perspective of the national student loan provider, the National Development Bank. With the modern theories of Economics which is the economics of the information theory of moral hazard and the basic process for risk management in modern management theory, Systematic analysis of the Guangdong Branch of China Development Bank to student loan risk management process of risk identification, risk assessment, risk response and risk monitoring is developed, which is the main innovation of the research and merely notified in recent research.