Study In Risk Management Of Y Bank With PPP Projects

For a long time,the infrastructure construction of the whole country has promoted the development of China’s economy,but the financing mode of large-scale borrowing by local government through financing platform has also buried a great hidden danger to the healthy operation of local finance.In 2014,the State Council issued the State Council’s opinion on strengthening the management of local government debt,trying to promote the reform of the budget system through the PPP model and resolve the local financial crisis.The PPP model means that government and social capital establish cooperative relations based on the principle of risk sharing and cooperation,and provide public goods and services.By July 2018,the PPP warehousing project has reached 12,425.Commercial banks in recent years,whose non-performing loan rate increasing,urgently need for quality loan projects.PPP projects bring new opportunities for commercial banks.In the case of Lake Erhai interception project,Y Bank first identified the project risk through the flow chart method,then evaluated the identified risk by AHP analytic hierarchy process,got the main risk,and finally carried on the risk response to the main risk.The author summarizes the problems existing in the risk management process of Y Bank,that is,the guarantee requirement of social capital shareholder is too low,neglects the operational performance index of the operation stage,and does not include the Government fund in the financial bearing capacity argumentation.Finally this paper pointes out some suggestions that establish and perfect the PPP project risk management system flow,the rational diversification of PPP project risk,improve the comprehensive service of commercial banks’ PPP projects.