The Study Of Project Loan Risk Assessment To Z Water Plant Investment

Commercial banks are the financial institutions that are established according to the law,which manage money and credit business.safety,liquidity and profitability are the operating rules of commercial Banks and the safety is the first operating principle.So,the Banks' credit risk management plays an important role in the development of banks.In the aspects of the balance of credit risk and Banks' earnings,scientific credit risk management is indispensable.And project loan,as one of the most important credit varieties in domestic banking industry,is particularly important to the guide of direction of the risk management.Increasing competition,more and more complex internal and external economic environment makes banks faced with certain challenges in the aspect of project loan business after the national economy into the “new normal” period.in recent years,the county vigorously promotes “PPP”mode and “government purchasing services”model to the construct the local infrastructure construction and encourage social capital to these areas.The change of business environment makes the bank faced with some challenges in terms of project loan business,at the same time it put forward higher requirements to the the corresponding guidance for project loan and credit decision-making project loan risk assessment.To alleviate the serious situation of the water resources shortage in northern China,the country put forward the south-to-north water diversion project.As the country gradually develop the whole project,the cities along the project must have matching surface water treatment plants.In recent years,lots of cities especially the areas along the south-to-north water diversion project construct new surface water treatment plants in order to satisfy the demands of the processing of surface water in the future.So the surface water treatment plant project in a certain period of time in the future,is not only one of the key investment projects at all levels of the government,but also an indispensable investment opportunity for all enterprises and institutions.And it is also one of main marketing projects in commercial banks.therefore,this type of credit risk assessment of the project is particularly important.In this paper,through the combination of theoretical and empirical method,using the study of investment project loan risk evaluation of the surface water treatment plant Z as an example,starting from the content and process of loan project evaluation,a set of comprehensive medium and long-term loan project evaluation method is used to analyze the risk management.First of all,the project is fully demonstrate and evaluate according to the evaluation elements content.Then,according to the evaluation results,the credit risk in this type of project evaluation is found out and solution of the risk is put forward.This article makes a real example as a starting point,through actively explore and optimize the risk management method to improve the level of risk management.The ultimate goal of the article is to provide the banks with valuable reference and help in this types of loan project risk assessment and to promote the project evaluation work under the precondition of effective risk management in order to gain more lending opportunities with higher revenues and less credit risks.The main content of this article is divided into the following several parts;The first part is introduction,which mainly introduce the background and significance of the thesis,research status at home and abroad,as well as this article's innovation;The second part is the the theory overview of project evaluation of project loans,including the related concepts,main content,and evaluation method of project loan evaluation;The third part is the study of factors evaluation of the project loan risk in Z surface water treatment plant;The fourth part is the comprehensive evaluation of Z surface water treatment plant project and a evaluation suggestion of this type of project.