Study on Action and Risk of Commercial Bank: Based on Governmental Financing Platform

Abstract

This paper researched the commercial bank’s behavior preference and decision criteria by theory of the firm of microeconomics in governmental financing platform lending activity. The results show: the commercial banks are very positive to lend the financing platform, if without administrative intervention factors, minimum default probability and maximal repay probability is one of the decision criteria for commercial banks to lend the financing platform, especially in financial or economic crisis circumstances. So commercial banks should take the effective measures to manage the financial risk.