Research On Commercial Bank Selection For PPP Projects Based On Real Option

Since 2014,the national development and reform commission issued "on the guidance of the government and social capital cooperation,ministries from controlling government debt,strengthen cooperation with social capital Angle,introduced the relevant supporting policies,the PPP model become the most popular model.In the face of such a big demand market,it is the business Banks that are in desperate need of a solution to the depth of their participation in the PPP surge.Commercial Banks used to have low interest rates,and the profitability of high-interest lending is gone.The scarcity of high-quality assets makes it harder for commercial Banks to operate.The emergence of the PPP model has brought new vitality to the development of commercial Banks.Therefore,the participation of our commercial Banks in the PPP projects is of positive significance to their future development.This paper analyzes the present situation and characteristics of PPP development in China.In view of the current trend of PPP,this paper analyzes the risks and benefits of commercial Banks in PPP model and the participation path,and compares them with traditional project loans.Considering the PPP project there are many uncertainties in its development,commercial Banks to control risks in the PPP project,security gains,need a can effectively with the idea of the PPP project investment decision-making evaluation method.This paper analyzes the real option its applicability in the PPP project investment decision-making,commercial Banks in China is studied in the PPP project implementation process USES the rationality of the real option decision-making,and implements the quantitative analysis of the PPP project investment decision-making evaluation.Through commercial Banks involved in the PPP model of expressway project,respectively with traditional value method and real options method to estimate the value of this project.Compared with the two evaluation results,the method of physical option is applied to the evaluation of the PPP project by commercial bank,and is more feasible and advantageous.The PPP project opportunity value in the real options approach is fully taken into account,to avoid the investment,and confirmed that the real option in the commercial bank to participate in the practical value of the PPP project.