Management of local government financing platform and risk prevention and control of commercial banks

As early as 1990s, financing platform of local government began to show a prototype. There is a serious mismatch between the power of local government and its financial authority, which leads local government revenue and expenditure gap become more serious. Under the pressure of reality, the local government has been seeking out the new way of financing and the financing platform of local government also arises at the historic moment. But the risk of the local financing platform is too high,if the risk of the local financing platform erupt intensively, which is the main source of funds in local government will be susceptible to be affect by its negative impact, then it may bring great risk on the stable operation. So this paper discusses on the questions that finding the way which effectively guard against the assets risk of commercial bank and establishing a standardized place and operation mechanism of the financing platform,and put forward some countermeasures and suggestions for reference.