The Research On Risk Management Of Small Loan Companies In China

Abstract:the non-bank financial institutions, the petty loan company as a small miniature enterprise and financing added, their financial services are small,scattered,flexible,fast, for "three rural", small miniature enterprise and individual and private economic development, effectively expanding the coverage of financial services. Play a positive role on the folk lending rate, stabilize and maintain financial market stability.However, in the process of micro-finance company,because the pre loan investigation, loan review, loan tracking management are not detailed enough, risk control is not in place, resulting in risk management issues become increasingly prominent. Therefore, the risk management of small loan companies promote small loan companies to operate in accordance with laws and regulations, which has certain theoretical and practical significance to improve the level of risk management.In this paper, the risk management of Chinese small loan company is the object research, of which is on the basis of previous research, in view of the actual situation of our small loan company risk, analysis, expert interviews, qualitative analysis combined with quantitative analysis by literature,in accordance with the "risk identification risk evaluation----measurement of risk, risk control, risk supervision"--alogical process, layer by layer, systematic, comprehensive study of China’s small loan companies, risk identification, risk assessment, risk measurement, risk control and risk supervision.Firstly, this article begins with the analysis of the current development and operation situation of Chinese small loan companies, discusses the risk management theory, the basic theory, the credit risk management theory, control theory of micro finance. These contents constitute the theoretical foundation of the research on risk management of small loan companies in china. Secondly, starting from the grasp of Chinese small loan company development present situation and operation situation analysis, grasp the petty loan company’s risk,the research discusses the related contents of risk recognition of Chinese small loan companies, on the basis of this, to identify the risk of Chinese small loan companies into the line, at last using FAHP empirically analysis of the risk identification of Chinese small loan companies, according to the results of empirical analysis, we can see the loan decision-making risk of total weight of0.216, ranking first in the12risk factors; the total weight of legal risk is0.196,ranked second,; and the total weight of industry risk is0.018, ranking11, which means that with the further relax further and Chinese financial reform of Chinese government restrictions on private capital into the financial industry, the industry of small loan companies will be gradually recognized by the society and government departments,industry risk.Thirdly, based on the risk identification of Chinese small loan companies, risk assessment of micro credit companies in China are analyzed in detail. In order to assess the petty loan company risk in our country, this paper constructs the petty loan company risk in our evaluation index system:customer management and decision-making ability dimension, customer loan characteristics dimension, the development prospects of customers, customer management, the characteristic dimensions of small loan company relationship capability dimension, the customer dimension through the solvency, risk assessment the index system.To fully understand the loan customers of our small loan company’s risk status, the article provides the basis for the petty loan company risk assessment in china. At the same time, through the XX small loans company loans to MM Technology&Trade Development Co. Ltd. with examples of small loan companies, the risk assessment index system for inspection, case analysis shows that:the risk assessment system has obvious significance to the customer risk-evaluation of small loan companies, the actual operation can regulate the micro-finance. Fourth, based on the risk of Chinese small loan companies risk recognition and customer evaluation, this paper uses Copula function related theory to build the petty loan company loan portfolio risk measurement model. In addition, through the AA micro finance company measurement to the small and medium-sized Enterprise portfolio risk, this example proves the rationality and validity of the model.Fifth, in order to solve the problem of risk control of small loan company in our country, this paper designs the index system of risk control of Chinese small loan companies, then determines the control line on Chinese small loan companies on risk, and uses the analysis method and advanced analysis methods such as generalized rules mining method to make accurate analysis of Chinese small loan company were each link in the risk control, to ensure the accuracy and effectiveness of the control results.From the perfection of the petty loan company risk control and optimization of industry risk and control process two aspects to put forward the Countermeasures of the risk control of Chinese small loan companies.Sixth, the article analyzes the regulation principle and supervision experience analysis of the international success of small loan companies. According to the operation status and characteristics of Chinese existing micro finance company, and depending on two aspects of regulatory objects and criterion of effective supervision framework of Chinese small loan companies, and a series of policies for sustainable development of Chinese micro finance company,the article puts forward proposals from the petty loan company risk control.In conclusion, this article is absorbing and referring to the theory of risk management methods, the risk management of Chinese small loan companies into risk assessment, risk measurement, risk control and supervision are discussed,and through the copula function, the fuzzy analytic hierarchy process (FAHP), try to establish the risk control system of Chinese small loan companies, this will provide some theoretical and methodological reference for Chinese small loan companies, risk avoidance and prevention.