A Study On Loan's Credit Risk Management Of Domestic Rural Credit Union

The market economy is the credit economy, the good credit relations are the development foundation of market economy. The credit realization degree is higher, the market economy development will be better, the society expanded reproduction may carry on more effective. But in general rural area of China, the credit is a serious problem, this problem has hindered agricultural and rural economy development. As a result of credit problem, the main power of the rural finance services - rural credit unions are not only brought massive credit risk, but also restrict rural credit union own reform and development seriously and has affected the function which the rural credit unions are the main power of supporting agriculture.Based on it, this article firstly analyzes the achievement of Chinese rural credit union reform, and secondly author analyzes the credit risk's characteristics which are different from the general commercial banks and policy banks, including the loan environment, reasons, loan objects and others. Thirdly author summarizes abroad about rural cooperative finance risk control, and analyzes the use for reference to our country. Finally author analyzes the current situation of rural credit union credit risk control and advanced the corresponding measures. This article has carried on the analysis from following five parts:Part one: preface. It elaborates briefly macro-background, the research significance, the research methods and innovation points.Part two: It describes Chinese rural credit union's present situation, and analyzes the importance of rural credit union's loan credit risk management. Firstly it discuss the achievement of Chinese rural credit union reform, secondly it analyzes the deficiency of the reform concisely. Finally based on present situations analysis, it analyzes the importance of rural credit union's loan credit risk management from macro-aspect and micro-aspect.Part three: This is innovation point of this article. It analyzes the credit risk's characteristics which are different from the general commercial banks and policy banks, including the loan environment, reasons, loan objects and others. This part discussed from the following aspects: Firstly the special rural environment makes loan credit risk to increasing, secondly the reasons of loan credit risk have its particularity, thirdly it's loan objects analysis including farmers and rural enterprises. Finally , other characters. Such as too many loan objects, too small loan amount every-time, too often credit risk happened and lacking evading way of credit risk.Part four: author analyzes the western developed country in rural cooperative finance risk control characteristics, and summarizes the general characters which our country can use for reference.Part five: author analyzes the current situation of rural credit union credit risk control and advanced the corresponding measures.