Studies On The Credit Asset Quality Of Rural Credit Union

Credit asset is the main asset of banks and credit unions and its quality influences directly the subsistence and development of banks and credit unions. The quality of credit asset is decided by the quality of capital operation. In view of the status quo of the poor quality of credit asset of Rural Credit Union in Undeveloped Regions, it is suggests the Rural Credit Unions how to increase the credit assets quality, decrease bad loan risk, promote credit asset availability ratio, develop their market competitive ability and realize their own value according to their own features (multipoint, widely located, weak ability, serious efficient of capital adequacy, poor quality of service object) and complying with the national industry policy which supports the economic of the "Farmer, rural and agriculture" and the local economic. Based on this purpose, the project analyzed the reasons that results in high ratio of bad credit asset and poor quality of credit asset of the Rural Credit Union through the investigation on the loan situation of 500 lenders of Z county Rural Credit Union, and promoted measurements and suggestions for decreasing the bad asset of the Rural Credit Unions of Z county, which are useful to improve the current credit asset management system of Z county Credit Unions and toincrease the operational efficient and results of their credit assets, thus improves their credit asset quality.The research project consists of four parts:Part 1 is the theory and practice of credit asset management, which discusses mainly the content and management of credit asset, credit structure and credit asset quality, as well as the "Basle Protocol" management model. It explains the current national macro policy on rural economic development and the requirements of rural industry structure adjustment on the credit asset of Rural Credit Unions, and thus the sufficient money supply of Rural Credit Unions.Part 2 is the status and evaluation of the credit asset quality of the research object--"Z county Rural Credit Union". Based on the 2001-2003 financial statements and credit statements of the county, it analyses and evaluates mainly the indications such as distribution of loan types (short term loan, medium &long-term loan, past due loan, idle loan, bad loan), loan recovery rates, loan interest rate, loan/deposit ratio, excess reserves ratio, capital adequacy and return on assets, to clarify the existing problems of the research objects.Part 3 discusses the reasons of the existing problems of the research object. In view of each existing problem, it investigated the loan status of 500 lenders and analyzed mainly the loan purpose, operational environment, operational status, operational results and public credit measurement etc., as well as the rural industry status in recent years. It found out the crux of the problems through investigation.Part 4 makes sum up and promotes measures and suggestions.