The Risks And Solutions Of The Cooperation Between State-owned Commercial Banks And Local Governments

In the last decade,China's financial system has changed dramatically.With the rise of online payment means such as We Chat and Ali pay,and the continuous reform and development of China's financial industry and changes,the competition becomes intense between the emerging network Banks and interbank.State-owned commercial Banks now face a more complex external environment,as the backbone of China's financial system,it's steady development is the key factor to promote national economic development to support economic system reform and maintain social stability.Local governments play an indispensable role in the development of state-owned commercial banks,there is an inseparable relationship between the two sides.The development of state-owned commercial Banks depends on the policy support of local governments,at the same time,the development of local economy also needs a large amount of financial resources provided by state-owned commercial Banks.China Construction Bank(CCB)have comparative advantage in the systematic management of risk prevention and control of talent reserves anti-risk ability market awareness and other aspects.all at once,CCB has a good tradition of providing financial support and quality and efficient financial services for large-scale national projects,such as OBOR,Guang dong-hong kong-macao greater bay area construction,TGP.So,CCB has an edge in working with governments at all levels and providing financial services.But,along with the joint-stock commercial bank each district city commercial bank and the network bank development advance by leaps and bounds,its more flexible differentiated services continue to chip away at the share of state-owned commercial Banks in the local government market,at the same time,under the circumstances of the national focus on cleaning up local government debts,the withdrawal of a large number of PPP projects across the country,increasingly stringent external regulation and tight liquidity conditions,at present,CCB faced an important and practical problem was that how to steadily strengthen cooperation with local governments and prevent and control potential risks.This paper analyzes the cooperation between state-owned commercial Banks and local governments,and find out the existing problems and potential risks in the current situation,therefore,some feasible solutions are proposed.It is of certain reference significance to the establishment of the interactive win-win mechanism between state-owned commercial Banks and local governments.We hope that the two sides can truly achieve win-win cooperation so as to better promote socialist economic construction and the healthy development of the local economy.