Risk Management Of Commercial Banks Participate In PPP Protect Financing

In recent years,China's heating industry has entered a period of rapid development with the acceleration of urbanization process.According to the prediction of relevant national departments,China's heating area will increase from the current 10 billion square meters to 20 billion square meters by 2020.With the increase of heating area,the government's investment in urban heating pipe network construction will be doubled.Urban heating is closely related to people's livelihood in China.In addition,the construction of urban heating projects is often accompanied by huge capital investment.The government budget is not enough to lead to the completion of the project,the government is now facing the burning urgency is how to properly solve the problem of the source of capital for such projects.In recent years,PPP mode has gradually emerged in China,and more and more livelihood projects adopt this mode.PPP mode can not only give play to the advantages of the private sector,but also solve the problem of insufficient project funds by introducing bank financing.With the wide application of PPP mode,many projects can not only proceed smoothly,but also ensure the construction speed and quality of projects.However,urban heating projects often have problems such as large scale and complex aspects,and there are many problems of participating members in projects adopting PPP mode,which may lead to many risks in actual operation.How Banks deal with such risks has a direct impact on whether Banks invest in the project,and the size of risks is also directly related to whether the project can be successfully completed and obtain the expected benefits,so the risk assessment of the project is very necessary.In this paper,through the risk assessment of the whole process of the project,the establishment of a sound risk assessment system for the bank to provide reference for the project risk assessment.This paper takes how commercial Banks participate in the risk management of PPP projects as the research object.Firstly,literature analysis is applied to sort out the PPP financing mode and relevant literature of urban heating industry to understand the relevant characteristics of heating industry and PPP mode.By analyzing the current situation and risk types of commercial Banks' participation in PPP project financing,the risk characteristics of commercial Banks' participation in PPP project financing were obtained.Then,taking Baotou XX heating project as an example,the risk analysis of commercial Banks' participation in PPP project financing was conducted.Firstly,this paper quantitatively analyzes the expected economic benefits of the project from two aspects of profitability and uncertainty analysis to analyze whether the project is economically feasible.Second section by establishing the model of the last chapter analysis the risk types were analyzed,and finally combined with the analysis to evaluate the project risk,in the end,this paper combined with the cause of all kinds of risks,in light of different stages of commercial Banks to participate in the PPP project financing develop in line with the various stages of the risk control measures,and the effective combination of different stages to form the whole project complete risk control system.The results show that the commercial Banks to participate in the PPP project financing risk control is a continuous process,in view of the project the whole process to establish a complete risk control system,not only can effectively reduce the risk of PPP project probability,can also for other commercial Banks to participate in a similar PPP project financing risk management provide valuable reference.