The Risk Management Research Of Medium And Long Term Project Loan In Commercial Bank

Since the project loan has been introduced our country, it has played a veryimportant role for the development of economics and society in china. It can solvesome financial issues in the area of infrastructure construction and give big support forthe economy construction of our country. At the same time, as the project loan is onethe most important asset operations of commercial banks, commercial banks can earnmuch profit from the high rate of the project loan. However, the high risk alwayscomes along with high profit. As we know that the project loan has a long period andmuch uncertainty, the medium and long term project loans have much risks. So themedium and long term project loans need more attention than the normal loans. Thecommercial banks should manage the risks of project loans more cautiously andcompletely. It is very necessary to research the risk of medium and long term projectloan management deeply.This paper takes the World Bank as reference, it breaks through the role of thecommercial bank as the loan provider and takes the commercial bank as the investor.So the commercial bank can participant in the project at the very beginning. Frombeginning to the end, commercial bank analyses, evaluates and controls the risks of theproject loan in all phrases. At first,this paper analyses the present situation of the riskmanagement. Then it puts up with some solutions to solve those problems. This paperconstructs overall evaluation model for the risks of project loan in different phrasesbased on Analytic Hierarchy Process and Fuzzy Comprehensive Evaluation method.According to the evaluation results, the paper puts up with the correspondingmeasures.