Studies On Warding Off And Eliminating Our Country's Rural Financial Risk

Rural Finance is a kind of financial sector giving service to the development of rural economy. As a kind of financial medium supporting the development of rural economy, it plays an important role in the sound development of national economy. However, given strong support to the development of rural economy, with influences of system, history and those from itself, Rural Finance has accumulated massive financial risk which not only cuts down the efficiency of supporting the development of rural economy, but also undermines the social stability. Therefore, this research is very important.This paper analyzes the financial risk of standard financial organizations. Standing the special era of Chinese structure reforms, from the ordinary case to special case, it firstly states the general theory of rural financial risk, subsequently, after the thorough check of the present situation of our country's rural financial risk, then, it analyzes its engendering mechanism profoundly. At last, it puts forward its suggestions of effectively warding off and eliminating the rural financial risk of our country.This article consists of five parts:This thesis introduces common theories about rural financial risk in the first section. At first, the thesis introduces basic definition of rural financial risk. Then, common market economy is theory prerequisite, based on common system condition, the thesis analyses causes for financial risk and briefly introduces some measures to ward off and eliminate rural financial risk from the angle of economics.The second part checks the present situation of rural financial risk. Beginning from the rate of NPLs, the sufficient rate of capital, the cost and the structure of assets est., it describes the expression of rural financial risk, at the same time, it describes the specific characteristics of our country's rural financial risk.In the third part, this paper analyses the engendering mechanism and principle of rural financial risk. It holds that there exist eight factors including imperfection of economy system during transition period, low efficiency of town-owned enterprises, defects of corporate governance of rural financial institution it self, lapse of financial supervising, bad social credit environment, fragmentary mechanism of risk compensating, constraint factors during the rural financial mechanism transforming, and serious administration intervening.The fourth part introduces the method of warding off and eliminating rural financial risk. Based on the researching results of several famous specialists, it puts up with the specific suggestions about warding off and eliminating rural financial risk, including saving financial institution, dealing with non-perform loan, reforming property right, enforcing company management of rural financial institution, strengthen outer supervising, intensifying, the risk compensation mechanism about rural financial institution and leading competitive mechanism.The fifth part is the system construction in- warding off and eliminating the rural financial risk .It analyzes the factors such as the support of policy, the improvement of credit environment, the intensification of legal institutions in detail.