Since 2009, the local government financing platform has the rapid development in the country. Through this platform, on the one hand, the local government widened the financing channels for the counterpart funding of the central government investment projects so as to accelerate the pace of urban construction; the other hand, commercial banks put more loans and further optimized the loan structure, accordingly they play an important role in responding to the crisis and expanding domestic demand. The rapid scale expansion of the local government financing platform has constituted a deterrent to the local financial solvency in many areas, meanwhile it has also bring some security problems to commercial bank credit funds, thus it may ultimately lead to financial problems and monetary affairs. The hidden risks have caused wide attention by government regulators and domestic commercial banks sector.
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