Research On Risk Management Of Local Government Financing Platform

China's current economic situation is in a new normal state.In 2018,in order to improve the regulatory framework of China's systemically important financial institutions,prevent systemic financial risks,and effectively maintain the sound operation of the financial system,the People's Bank of China,the Bank of China Insurance Supervision and Administration Commission,and China Securities Regulatory Commission jointly issued the ‘Guiding Opinions on Improving the Supervision of Systemically Important Financial Institutions'(Issued [2018] No.301).Preventing systemic financial risks is a matter of great concern to the Party Central Committee.Under the new era background,local government debt management is becoming more and more important.Its purpose is to effectively solve the financing platform itself,prevent government debt risks,and maintain the healthy and orderly development of financial ecology.This paper first systematically analyzes the generation and development of local government financing platform debt,reveals the current status of debt,and defines the related concepts of risk management.By studying the debt risk situation of local government financing platform,analyze the risk factors,which including business risk factors,institutional risk factors,policy risk factors,local fiscal risk factors,and bank liquidity risk factors and reveal the impact of risk.Through comprehensive analysis,risk prevention countermeasures were proposed from the aspects of formulating risk management strategies,proposing and implementing risk management countermeasures,and conducting risk management supervision and improvement.Taking QT New District as an example,the paper analyzes its debt status and proposes risk prevention measures based on the above analysis.Finally,it is concluded that in order to prevent the risk of government financing platform,commercial banks should further enhance their understanding of compliance and legal operation;strengthen research and analysis of government debt management policies;properly handle platform company stock loans and new business risks;The financing platform company should promptly clear the relationship between creditor's rights and debts,and timely add guarantees to balance risk and return.Through analysis,we bring forward related policy suggestions about the local government financing platform risk managerment.In addition to credit risk,liquidity risk,operational risk,collateral risk and risk from counterparties,it also involves uncontrollable market risk.Risk management should not be limited to certain types of business,and various types of risk management should be strengthened in order to cope with the risks faced by various businesses.First of all,we must strengthen credit risk management and control.The second,we must strengthen liquidity risk management and control.Thirdly,we must strengthen operational risk management and control.Fourthly,we must strengthen reputation risk management and control.Fifth,we must strengthen market risk management and control.