Study Of Loan Risk Of Local Government Financing Platform

Local government financing platform is an important subject of the local government debt, with the growing of local government financing platform after 2010, the non-performing loans are dramatically increased. The large-scale investment and financing of the local government platform has brought the huge debt, combined with the non-standard management of local government financing platform, will probably lead to capital chain rupture and be a risk financial stability to a certain extent.This article first explore its internal operation mechanism on basis of describing the concept of the local government financing platform, the theoretical review in combination with relevant policies of the current local government. Then introduces the current situation of financing platform of J city from the platform distribution, loan balance and investment direction. Detailed analysis was also carried out on the risk performance of loans. Later, this paper determines four indicators through literature induction and depth interview method, which are the platform profit model, the loan amount, flow loan rate, assets profit margins. It also set up the Logistic model to evaluate corresponding loan risk of local financing platform of J city. Finally, it puts forward prevention and controlling countermeasures of local government financing platform from government, financial institution, the local government financing platform and the local government, which can provide risk assessment and control solution for local government financial platform at present.