Research On The Application Of Financial Analysis In Commercial Bank PPP Project Credit Decision-making

Infrastructure is a series of engineering facilities that enhance people's living standards,promote urbanization process,and ensure the rapid development of society.In China,infrastructure construction has always been monopolized by the government.Along with the accelerated development of China,the demand for the supporting infrastructure is increasing,and the scale of government fiscal debt accordingly has been over-nuclear,making it difficult to cover the projects under construction.Hence,the traditional government monopoly pattern has been broken.The introduction of the PPP model effectively relieved the government's financial pressure.Since the real definition of PPP model and its policy support were proposed in the Third Plenary Session of the 18 th CPC Central Committee in 2013,PPP model has been raising a nationwide upsurge.PPP projects generally have the characteristics of large construction capital demand,long construction cycle time and relatively slow investment return.It is difficult to address the actual funding problem by simply relying on the cooperation between the government and social capital,which creates a new loan investment for commercial banks.The PPP model has been in application in China for less than 10 years.Although the project involves a wide range of industries,it has to be acknowledged that there are many failure cases because the two sides of the cooperation have different perspectives and different purposes,as well as the self-protection of their own interests.It also increases the risk for banks to participate in the PPP project financing.This thesis firstly summarizes the related theories of PPP mode,introduces its concept,characteristics and development process.Secondly,taking the Industrial and Commercial Bank of China(ICBC)as the most typical case,the financing of enterprises will be thoroughly studied to measure and evaluate the financing risk through the relevant financial analysis method.Finally,combined with the author's participation in the Ankang North Ring PPP Project,a series of financial indicators are calculated using the above-mentioned relevant financial analysis method.Based on this,the final decision of credit can be made,and the optimal suggestions are proposed.Through the method of financial analysis,this thesis draws the credit decision of PPP project,providing a good reference for the commercial banks to participate in PPP project financing.