Study On Legal Prevention Mechanism Against The Credit Risk Of The Pilot County And Village Bank Loan

In order to solve the financial issues in villages, the Pilot County and Village Banks in some provinces and municipalities have entered the stage of implementation in our country in 2006 which has the tendency of extension. As small-sized commercial banks serving for countryside, agriculture and peasant (brief in Three Agriculture), their credit risk of loan have specific characteristic. Standard arrangement provided by law is a very important way to prevent credit risk of loan besides daily operation and management which is also the purpose of this thesis.The thesis is composed of following five parts.The first chapter is the introduction, which introduces briefly the found and the pilot background. The research status of our country's financial issues and the loan credit risk of the pilot county and village in our home country are mentioned, which is highly significant to construct the legal risk prevention mechanism of the pilot county and village banks credit loan for the development of the country banks.The second chapter probes into the connotation and position of County and Village Banks which starts with the concept and characteristic of it and the relationship between the County and Village Banks and the common commercial banks. This chapter will analyze the market orientation of County and Village Banks that is serving for Three Agriculture in terms of object and function.The third chapter is analysis of banks' risk. Firstly, the concept, characteristic and classification of credit risk of loan in common commercial banks will be introduced. Secondly, the formation reasons of credit risk of loan in County and Village Banks will be explained from the aspects of Three Agriculture features and legal factors to emphasize the specific characteristic of it. The study of legal factors is the theoretical framework for the research of establishment of legal risk prevention mechanism in County and Village Banks.The forth chapter pertains to the establishment of legal risk prevention mechanism in County and Village Banks. Through the analysis and demonstration above and the legal practice in our country, the thesis attempts to put forward some suggestions for the establishment of legal risk prevention mechanism in County and Village Banks in terms of Guarantee Law, relative laws on villages' credit and Insurance Law. The fifth chapter servers as a conclusion of the demonstration above, in which the importance of the establishment of legal risk prevention mechanism in County and Village Banks is further emphasized.