(1) Policy risk. Policy risk is the primary risk for commercial banks to issue loan commitments. For industries and product projects restricted and prohibited by the state, we shall not issue loan commitments. At the same time, when issuing the Letter of Commitment, environmental protection, land, national defense and other compliance approval procedures involving resources and public interests should be the primary consideration.

② Legal risks. At present, China has not yet formulated detailed and perfect relevant laws and regulations on the loan commitment business of commercial banks, which has formed legal risks to a certain extent.

(3) the risk of unfair competition. For business development, some commercial banks regard loan commitment as a means to win over high-quality customers and promote business development, arbitrarily lower the charging standards, and handle loan commitment business for customers with less fees or even free of charge, which has the risk of unfair competition that disrupts the normal order of the market.

(4) Project evaluation risk. Due to the neglect of the examination and evaluation of the project and the lack of necessary risk awareness, the evaluation risk of credit projects will be misleading in the future.

⑤ Liquidity risk. If the customer requests full credit in a short time, the bank may not be able to provide full funds, or it may have a negative impact on liquidity after providing relevant funds, resulting in bank liquidity risk.

(6) operational risk.