The Reform Of China's Local Government Debt Management Methods And The Measurement Of Its Effect

The problem of local government debt has a long history,especially the issue of local government debt management and methods has become a hot issue of concern to the society,and regulators and academics have actively conducted in-depth studies on them.This article focuses on this hot issues,combining the dual background of government debt management and maintaining national financial stability.We proposed the topic of this article,on the one hand to seek a scientific,rational and effective new method of local government debt management,on the other hand to ensure our financial system maintains healthy operation.This article takes the local government debt management as the main research question,draws lessons from the domestic and foreign research literature as well as the domestic and foreign actual experience,sums up the existing methods of local government debt management and the applicable environment of each method.By combing the historical process of the local government debt management in our country,we find that the local government debt management method can not be applied to the current economic environment,the financial system and the financial development.We need to seek for a new scientific and effective management method.The Ministry of Finance issued a document to clarify the current local government debt handling opinions and opened a new chapter in the local government debt management in our country.The replacement of local government debt as a new management methods came into being.Based on the new local government debt management method,this paper focuses on the theoretical analysis of the role and influence of the new method of local government debt management.From the angle of promoting the economicdevelopment and promoting the vitality of the market,this article expounds the important role of the local government debt management method reform.We also proceeded from the two main bodies of local governments and commercial banks to analyze the impact on local government financing costs,financing terms,debt structure,debt repayment pressure,and operational mechanisms,as well as the profitability of commercial banks,asset safety,and assets.Liquidity and other uncertainties.We find that the new methods of local government debt management have different impacts on different participants.In order to effectively judge the effect of this new method of local government debt management,this article uses the method of event analysis and welfare analysis to take Shandong Province as an example to analyze the status of Shandong government debt and the process of government debt replacement.From the two perspectives of Shandong government and Commercial banks measure the effect of this government debt replacement,and measure the effect of the local government debt management method from the perspective of the whole society,to more fully,scientifically and reasonably reflect the effect of the local government debt management method.The conclusions of this paper have very important meanings in theory and practice.First of all,this article analyzes the applicability of the existing local government debt management methods,combined with China's special national conditions,the financial system and the financial environment to choose the analysis.And find suitable debt management methods for the development of local government,for scientific reform and innovation the existing local government debt management methods.Secondly,this article expands on the existing research objects of public management,not only on one aspect of local government,but on a comprehensive measure of the impact of all parties' interests.And also analyzes the gains and losses of commercial banks in this process.The evaluation of the management effect of the new method of local government debt management is more comprehensive,macro,and scientific.It will provides a theoretical reference for the related research on the calculation of the effect of local government debt replacement.Finally,this study helps to reduce conflicts in the implementation of multi-policy objectives.Reduce the cost of government debt financing,extending the financing deadline will lead to lower profit margins of commercial banks,increasing exposure to risk is not conducive to stabilizing the financial markets,resulting in the contradictions in the implementation of various policies and conflicts.This paper scientifically and comprehensively measures the effect of local government debt replacement,with quantitative analysis and qualitativeanalysis,analyzes the changes of the welfare level of the two main participants,and judges the change of the total social welfare level,and realizes the calculation of the replacement effect of local government debts.It will help to better balance the requirements of maintaining national financial stability and government debt management.