Bank Loan Risks and Countermeasures of Colleges and Universities in China

Bank loan has been the major channel in higher education institutions, most bank loans went to the construction of university infrastructures, But huge amount of loans suggest the risks, using the corporation financial management skills to analyze the risks of universities, there is no denying that universities must have operational risks and financial risks. Government should provide support to universities by formulating policies that can facilitate the universities' repayments of loans, negotiate with the central bank so as to lower the interest rates for university loans and extend the repayment period. Universities should take initiative to raise money by broadening sources of income and reducing expenditure.