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A Study of the Causes and Countermeasures of Colleges and Universities Obligation Financing in China

Author: WangJunHua
Tutor: LvBaoSheng
School: Hebei University
Course: Finance
Keywords: Institutions of higher learning Liabilities financing Risk
CLC: G647.5
Type: Master's thesis
Year: 2006
Downloads: 446
Quote: 7
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Abstract


With the continuous deepening of China 's higher education investment and financing system , our institutions of higher learning , the financing model of historical change, financing channels showing a trend of diversification . Especially in the late 1990s , the state began to promote the implementation of the popularization of higher education , the rapid development of higher education , the implementation of the policy of the college enrollment , colleges and universities have this as an opportunity to expand the size of school efforts to achieve leapfrog development . However, colleges and universities extraordinary development requires huge amounts of money as a strong support , in order to solve the outstanding contradictions a huge college development requirements with limited state financial allocations , the university universal adoption of the liabilities of this form of financing . The bank loans the capital bottleneck problem in the extraordinary development of the college , improve school conditions , but also provides a new area of ??investment for banks . Banks , universities a \However , debt financing cost loans to debt service , as nonprofit organizations , institutions of higher learning , if the blind huge amounts of debt , will put a heavy debt burden can not repay the debt if the maturity on will lead to all kinds of liabilities financing risks , not only is not conducive to the long-term development of China 's colleges and universities , but also to the banking sector caused a huge amount of non-performing assets . Therefore , how to guard against risk of universities liabilities financing is lie in colleges and universities , banks, and government before an important topic . Firstly, starting from a historical perspective , to study changes in Higher financing model , college enrollment liabilities financing situation analysis , demonstrate the necessity and possibility of financing liabilities of our institutions of higher learning . Then starting from the characteristics of the Chinese universities liabilities financing , depth and detailed analysis of the basic types of universities 'debt financing risks , and to examine the causes of the risk of the universities' debt financing from the micro and macro levels . Last major departure from institutions of higher learning perspective , to proposed the liabilities financing risk prevention countermeasures to the State education administrative departments and banks to make recommendations .

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