Risks Of Commercial Banks In China National Student Loan

State-subsidized student loan is a vital measure to help impoverished college students solve the education expense. However, the development of state-subsidized student loan is rough over the past ten years. Faced with many risks like credit risk and repayment risk, commercial banks have to find out a new path and analyze the rootstock of risks, which can help it to better avoid risks and make state-subsidized student loan can indeed solve difficulties of education expense for impoverished college students with respect its other benefits in the same time.The paper will analyze the student loan system and policies as well as the current implementing situation; identify all the possible risks for state-subsidized student loan; discuss state-subsidized student loan risks for commercial banks and develop a risk evaluation index system; use analytic hierarchy process to sort all the risks by its importance and then put forward risk prevention measures for state-subsidized student loan.The paper analyzed the background and meaning of risk studies of state-subsidized student loan firstly, and define the relevant core concepts and put forward research objects, methods and ideas. Then the paper reviewed the development processes of state-subsidized student loan from three aspects:the policy and system, current situation of student loan implementation and risks for state-subsidized student loan, and point out that loan default is the main risk for student loan. Next the paper organized the framework of risk management from its procedures; analyze the combination and behavior of stakeholders based on stakeholder theory from four aspects:credit risk, policy risk, risk management and environment risk, and make an analysis and identification of risk factors for state-subsidized student loan. Based on the risk factor identification in the earlier chapter, the paper established a risk evaluation index system for state-subsidized student loan according to expert interviews; utilize analytic hierarchy process to build risk evaluation index system and evaluate risk factors for student loan, and finally draw the conclusion that credit risk and policy risk are the main factors for the risk. On the basis of the aforesaid risk evaluation, the paper put forward measures to improve the risk management capacity of commercial banks when carrying out student loan business. These measures consists of improving credit consciousness and risk management level, perfecting the student loan system, strengthening student loan management and lowering environment risks.