Research On Loan Risk Management Of Commercial Bank PPP Projects

PPP financing model is a new financing model which integrates the government policy strut and private social idle funds organically,providing favorable conditions for implementation and smooth operation of projects.With China allows private idle funds to participate in public products and services,this model is preliminarily applied in many fields.PPP program general has several characteristics,such as big investment scales,many participants,contracts is complicated and varied and so forth,for these characteristics,bank provide limited recourse for these projects or loans which without any recourse will face many risks.Therefore,it has important theory value and research significance to study how to averse risks effectively in advance when a bank offers a loan for a project,and how to manage these risks when risks occur.The research objects of this paper are PPP project financing,bank loans and its related risks in financing process.On the basis of reading masses of domestic and foreign literature of the PPP financing and risk of bank loan,this paper integrates the situation of China,putting forward some methods to manage these risks better.First,this thesis starts from the definition of PPP project financing,which briefly explains the mode of PPP operation and how to select an appropriate mode better in different conditions,then,we analyze the opportunities and challenges of commercial banks in PPP project financing progress.According to the questionnaire survey of south Jiangsu,this thesis illustrates the situation of south Jiangsu's commercial banks which participate in PPP projects.We start with the life cycle of PPP projects,making introductions of the preparatory stage,bidding stage,financing stage,construction stage,operation maintenance phase,and transition phase,focus on the characteristics of each stage,summarizing the existing risks of these stages and expounding several problems that must be considered when banks offer loans for PPP projects.This paper makes case study of Jiqing high-speed rail PPP project,combining the theory with practice to propose the measures to prevent these risks and the countermeasures when risks occur.The countermeasures part can help banks effectively respond loan risks in PPP projects,and it provides theoretical basis for PPP projects demanders to obtain the bank credit financing.