Prevention and Management of Local Financial Risks in Guangdong Province: A Balance Sheet Analysis Study

Current research on local financial risk primarily focuses on theoretical analysis, with less emphasis on empirical analysis. The utilization of balance sheet analysis to examine local financial risk in Guangdong Province aims to bridge this research gap. By compiling balance sheets of the local financial sector, the analysis reveals that the financial sector in the Pearl River Delta region exhibits relative stability, while indicators in the eastern and northwestern regions of Guangdong Province show varying degrees of fluctuation. Based on these findings, the following countermeasures are proposed: First, compile and refine balance sheets of the local financial sector. Second, establish a collaborative support mechanism for preventing local financial risks. Third, expand and enhance the assessment system for local bank supervision indicators.