Research on Risk Prevention of Investment in Poverty Alleviation Development Fund

Taking B City of Yunnan Province as an Example

DOI

10.2991/aebmr.k.220502.019How to use a DOI?

Keywords

risk management; poverty alleviation; 13th Five-Year Plan; public-private partnership

Abstract

Nowadays, under current national conditions, economic growth is slowing down, structural contradictions are becoming more prominent, and the willingness of social capital to invest is decreasing. As the government’s financial pressure increases due to its serious debt, it is hard for government investment to meet the demand for infrastructure construction. As a result, public-private partnerships (PPP), a funding model for a public infrastructure project, emerged. For now, the business model of commercial banks participating in the government’s poverty alleviation fund is not common in China, and there are few relevant risk analysis studies. This paper, through the method of literature review, analyzes the specific risks involved in this specific financial innovation business model from the perspective of commercial banks. Starting from the analysis of the era and policy background of the establishment of the poverty alleviation fund in City B, the paper analyzes the feasibility and risk management of Bank A through this innovative business cooperation under the current environment, so as to put forward risk prevention countermeasures. The paper finds that, according to the analysis of the balance of payments and disposable fund for City B, the total economic volume and comprehensive financial strength of City B will show significant growth in the next few years. Besides, the debt analysis of City B shows that the debt servicing capacity is in line with its overall economic development level. Therefore, the government of City B has the ability to repay debts and provide a strong guarantee for Bank A’s capital.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Jingzhuo Zhang
PY  - 2022
DA  - 2022/05/16
TI  - Research on Risk Prevention of Investment in Poverty Alleviation Development Fund
BT  - Proceedings of the 2022 International Conference on Urban Planning and Regional Economy（UPRE 2022）
PB  - Atlantis Press
SP  - 86
EP  - 91
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220502.019
DO  - 10.2991/aebmr.k.220502.019
ID  - Zhang2022
ER  -