Study On Rural Microfinance Risk Management Of PSBC Branch In Gansu Province

Although microfinance in China operated only a few decades, it has developed quickly and made remarkable achievement in the rapid development of rural finance and in poverty. Postal Savings Bank (PSB) is new commercial banks. Microfinance acts as a core strategic business in PSB, which is the inherent requirement to playing comparative advantage of PSD, is the inevitable choice of development strategy for PSD and the only way for the transformation of commercial banks, and is also importance measurement of "expand the business scope of the postal savings bank of agriculture-related" according to the Central Government of China. In fact, micro-credit business of PSD has achieved good social and business benefits. At the same time of rapid development of microfinance, the business risk control concepts and measures of microfinance do not really keep up with business development, making risks arising in the microfinance business problem to a certain extent hinder PSD health and sustainable development of the microfinance business.In this article, firstly, I reviewed for institutional change of rural micro-credit arid rural micro-credit practices in foreign countries, discussed on characteristics of rural micro-credit of PSD in Gansu province and characteristics, types of rural micro-credit risk. I believe that rural micro-credit risk is derived mainly from natural, policy risk, management, market and operational risk. Consequently, I analyze the reason of rural microfinance risk in PSB of Gansu province from economic reasons, internal and external reasons. On the basis of this knowledge, I pointed out specifically how to identify, evaluate and control the risk of rural microfinance business. This article will contribute to the Bank's credit Department strengthening micro-credit risk management.