Study In The Chinese Commercial Banks With PPP Model

At present, an important growth point of China’s economy is the cities of urbanization construction and infrastructure construction, but the traditional financing way is to rely on the government through the local government financing platform to meet the demand of construction, there is a hidden trouble in this way, thus forming a large amount of debt of local government. In 2014, the state council issued the "state council on strengthening the management of the local government debt opinions", stripping the function of local government financing platform, promoting the government and the social capital cooperation, encourage to apply this pattern in the field of infrastructure construction, encourage social capital through franchising, to participate in the public urban infrastructure have certain benefits such as business investment and operations.In 2016, the ministry of finance released the PPP information platform, the PPP project carried out in the country, and involved in many provinces and cities area, covering all 19 industry areas. till now the number of PPP project is 7110, a total investment of 8.3 trillion.Because of the PPP model has broaden the channels of funding sources, reduce the pressure on local government finance, prevent the local government debt risk, the PPP mode will become the one of the important infrastructure construction investment and financing mode, it has a broad prospect.However, because of the PPP project lasts long maturity, large capital demand, it is difficult to find a suitable method makes the social capital involved. Commercial banks as a source of funds in our country and the ability to raise funds is strong, it is also one of the main source of the PPP project financing. Especially after the central bank cut interest rates five times in 2015, the commercial banks in the business income, risk management is facing severe challenges, banks need to be more diversified, banks pursue new challenge, eager to find a mature way of participation in involved in the PPP projects.In this paper, the case is a commercial bank to participate in the PPP project about region government infrastructure, discuss problems of commercial Banks and the solution method, and points out that the existing deficiencies in the case of and how can strengthen the resolve measures, at last, through case and combined with the practices of commercial Banks to participate in the PPP project, make a summary, in the future the prospect of commercial bank to participate in the PPP project is light.In general, the risk management of commercial Banks participated in the PPP project is not mature, there are huge gaps in the post-loan management, having not form a complete system of PPP project risk management. However, as the PPP project promotion and the increase participation of social capital, we can predict the future of the commercial Banks risk management of PPP project will be more and more perfect, and the management effect will be better. The PPP project will become one of the important type for commercial bank business in the future.