Research On The Risk Of Mutual Fund Of Farmers' Cooperation In Hebei Province

Providing simple and quick loan services for farmers is key issues on impacting rural economy and social development. The emergence of mutual funds of farmers'professional cooperatives provides a new idea to address this issue. Mutual fund rely on the majority of shares to raise funds, and provide some financial support for the production and life members of the cooperative, which both have symmetric information, transaction costs low. The procedure is simple, but also with formal financial organizations and regulatory. Mutual funds of farmers'professional cooperatives have played a good role at promoting industrial restructuring, easing on the right track insufficient supply of financial institutions in rural areas, increasing farmers'income and achieving large-scale economies etc. However, as new rural financial institutions, in the actual operation in the process of increasing risk, whether managers or their operation and management of the majority of farmers still lack sufficient knowledge, do not establish a scientific and effective risk prevention mechanism. This makes mutual funds exiting enormous uncertainties lurking during actual operation and sustainable development.In this paper, mutual funds of farmers'cooperatives in Hebei Province are the research object. Through studying the forms of liquidity risk, credit risk, operational risk, it is concluded that the cause of funds risk is the limitation of fund sources , the credit risk is because of cost, market and the farmers, the operational risk is lack of internal management and lower quality of personnel monitoring. Measures and suggestions are put out according to different types of risk; a scientific and reasonable risk control mechanism is constructed in order to enhance the new rural cooperative financial institutions capacity of identifying and resolving risk and promote sustainable development of their health, better services for rural and farmers. Through the identification and prevention of financial risks in rural areas of research, it helps supple and improve of the rural financial institutions in the new theory of risk prevention, and promotes the healthy development of rural financial markets.