Research On The Government Purchase Mode And PPP Mode Selection Of Z Bank Government Credit Business

This paper studies the choice of Z bank in the government purchase service model and PPP model when developing its government credit business.In the current policy environment,government purchase service and PPP are both hot topics.However,there are more literatures analyzed and discussed for separated one topic,while less for combined two topics together.In this paper,the author compares the government purchase service model with the PPP model,and analyzes the reason of lack of enthusiasm from both social capital and bank initiative when using PPP model inspite of its hotness.First of all,the author introduces the basic theory of government purchase service model and PPP model.Secondly,the author introduces the system of RAROC(Risk Ajusted Rate of Capital),and the selection method when Z bank proceeds to a credit program.Based on the perfect theory assumption,the author introduces the benefit and risk of government purchase mode and PPP mode respectively.Beginning with the developing process of government credit for Z bank,the author illustrates the importance of government credit programm on the bank assets business,and futher specifies the benefit and risk of two models and laies the foudation for the comparison of two models.The focus of this paper is how the Z bank selects one model of two by applying the RAROC index system.Through the specific case,comparing the income index and risk index of each model,and considering the management objectives of Z bank,the author draws the conclusion from the theoretical point of view;Meanwhile,using the method of empirical analysis,comparing the theoretical results and actual business scale of two models,the paper will demonstrate the rationality of the selection result.Finally,the author will make recommendations for the results of Z bank selection,and provide reference for the Z bank’s government credit business.