Research On Risk Prevention Of Local Government Financing Platform

With the reform of the financing system of the government in the 20 th century and the reform of tax sharing system,and the impact of the financial crisis in 2008,the government financing platform emerged on a large scale and assumed the main functions of urban construction.However,in 2014,China issued the "opinions on strengthening the management of local government debt",and the rumors of a tightening of the financing platform began to rise.In 2017,the ministry of finance,the national development and reform commission,the ministry of justice,the people’s bank of China,the China banking regulatory commission,securities regulatory commission(CSRC)six ministries jointly issued "on further regulate the behavior of local government debt financing notice(CaiYu [2017] no.50),again put up the local debt risk,warned the government behavior of bad debt.Indeed,our country government financing platform in the "growth,restructuring,promote reform and livelihood" played an important role,for transportation,municipal,and ecological environment have played an important role to improve,because the financing growth too fast,the system construction to keep pace with the development of economy,the local governments have accumulated a certain amount of fiscal and financial risks.This paper is divided into six parts in structure.The first part describes the research background and significance of this paper.The second part is the literature review and theoretical basis,which mainly summarizes and summarizes the local financing platforms at home and abroad,and summarizes the principal-agent theory,fiscal decentralization theory and risk management theory.The third part is the current situation and risk analysis of the local financing platform,mainly the definition,development course and risk classification of the platform.The fourth part is the main part of the article,the basic situation of local government financing platform B are summarized,and its financial statements and the external environment is analyzed,and the policy,finance and banking credit risk,analysis its risk.The fifth part is put forward the direction of the local government financing platform risk research and solution,draw lessons from the comprehensive risk management concept,using the risk early warning mechanism construction financing platform risk evaluation system,and evaluate the case company from set out actually,formulates the financing platform risk prevention and control measures,and from financial institutions,the local government and platform itself put forward the corresponding Suggestions to cope with the situation,to fundamentally solve the risks.The sixth part is the conclusion part.Through the research on the financing platform of local government,we can make a comprehensive judgment on the risks of the local government,and then we can strengthen the supervision in advance,in the event and in the post.When analyzing risk countermeasures,this paper selected the B local government financing platform as the research object,using literature research method,case research method and analytic hierarchy process(ahp),the risk problems of system research,established a risk evaluation system,from the government,financial institutions,local government financing platform from three aspects and levels of multi-dimensional decomposition.In view of the risk prevention of financial institutions,it is necessary to strengthen pre-project audit,implement classified management of stock loans,post-loan management and verification,and establish a diversified financing structure.The local government should establish the financing responsibility system,standardize the operation mechanism of the platform,and strengthen the local government debt audit by combining the economic responsibility system of leading cadres.The local government financing platform should first improve the corporate governance structure and then establish the risk warning system.