Commercial Bank PPP Project Financing Risk Control Research And Empirical Analysis

With the economic and social development and the continuous improvement of people's living standards,the people's demands for a better social life are also growing,and the funds needed for urban infrastructure construction are expanding.This not only increases the financial pressure on the government,but also gives the Chinese economy.Bring new growth potential.However,the passage of the Budget Law(Amendment)and the release of the State Council's Opinions on Strengthening Local Government Debt Management have made it possible for the government to raise funds through financing platforms,which means that it is a local government financing platform.The same approach as the model of government expenditure financing will also be unsustainable.In this context,the PPP model has become a hot way of infrastructure construction.However,due to the large scale and long period of financing of PPP projects,government departments and private enterprises cannot guarantee the supply of project funds.Therefore,commercial banks can rely on the advantages of capital,give full play to the role of capital allocation,guide the flow of bank funds into PPP projects with good returns,and achieve the improvement of the success rate of the project while ensuring the improvement of the bank's own profits.In addition,banks can also make full use of their professional and information advantages to provide consulting services for PPP projects.While we are seeing the potential of the PPP market,we should also clearly understand that the environmental maturity of China's PPP system is still not high,and the quality of the project is difficult to distinguish.What kind of risks should be paid attention to when commercial banks handle PPP project business,how to prevent risks,and various documents have not yet formed a unified answer.Under the premise that such research is not thorough enough and the practical experience is not sufficient,it is of great significance to study the risk and risk control of commercial banks participating in PPP projects.Domestic and foreign scholars have conducted in-depth research on the risk control of PPP mode,and the theory is rich,which laid the foundation for the research of this paper.By combing related researches,it is found that the existing literatures are less likely to analyze the financing risks of commercial banks.Therefore,the paper takes the financing risk of commercial banks' PPP projects as the research object,and studies the financing risks of commercial banks participating in PPP projects.The research content and corresponding conclusions of the thesis mainly include the following two aspects:Firstly,through collating relevant literature and materials,sort out the main modes of commercial banks' participation in PPP projects,and explain the sources and types of risks they face,and sort out the methods of risk identification and risk assessment to effectively assess the financing risks of the projects.Lay the foundation.Under the assumption of complete information,a three-party game model including government departments,private enterprises and commercial banks is established.Through the analysis of the game process,the solution solution of Nash equilibrium is obtained,and then the reasonable way for commercial banks to share risks is obtained.Secondly,it introduces the operation mode,risk source and type,risk identification and evaluation of commercial banks participating in PPP projects.Finally,use actual cases for analysis.The paper selects the commercial bank to participate in the Nanming River water environment comprehensive improvement project as an example,and deeply understands the project background,project operation mode and project investment and financing mode,and analyzes the risk sources of commercial banks participating in this project.A comprehensive analysis,and concluded that the risks faced by commercial banks are mainly project-specific risks,contractor risks,government sector risks and internal risks of commercial banks,and further combined with this case to evaluate the magnitude of various risks.According to the corresponding research results,the paper puts forward the following suggestions.First,the cautious selection of cooperative projects should choose infrastructure construction areas that are closely related to people's livelihood,have a major impact on the local economy,support the development of the state,and have high default costs.In addition,we must focus on the return mechanism and the standard contract.The second is to improve the talent reserve of PPP projects and avoid the losses caused by personnel operations and decision-making mistakes in the process of PPP project risks.The third is to monitor local fiscal risks,including selecting high-quality local governments,standardizing government expenditures,and paying close attention to project subsidies in the budget.Fourth,select high-quality social capital parties,and focus on social capital parties with good market prospects,good business conditions,good financial status,and sufficient project experience.