Management Research Of Risk Classification Of Loans In Rural Credit Cooperatives

Rural credit cooperatives are an important part of financial institutions in our country, and are also the main force in rural finance. Due to historical development, as well as the reasons for such areas as services, the existing proportion of non-performing assets of rural credit cooperatives, compared with the state-owned commercial banks is still high. There is still an urgent need to solve many problems, such as credit management and the means of risk control. Therefore, it is particularly important to in-depth study of the risk characteristics of loans in rural credit cooperatives, improve the management of credit risk classification system, improve the ability to prevent and control credit risk, reduce operational risks, and improve the operational effectiveness of their own, thus building a new socialist countryside credit funds to provide effective support.In this paper, based on commercial banks credit risk management and loan classification theory, use empirical research and normative research and comparative analysis methods. First, the paper gives a brief summary of loan risk classification history of China's rural credit cooperatives in the management. Second, done a major survey of the implementation of China's rural credit cooperatives in the states of the loan risk classification, summed up the achievements made, identified the remaining issues and made an in-depth analysis on the reasons what caused the management problems of credit risk classification in the process of implementation. On this basis, the paper targeted to take the general ideas and main measures on implementing effective management of credit risk classification in rural credit cooperatives. The paper is divided into five chapters. Chapter one is the introduction. Chapter two is about POIB (Pass, overdue, idle and bad loans) in the management of loan risk classification, and also the concerned theory about the management of loan risk classification. Chapter three is the important part of the research. According to the research about current management situation of 24 rural credit cooperatives'loans in Heilongjiang Province, this chapter showed the efficiency and existing problems from the aspects of loan risk classification standard, internal management level of rural credit cooperatives, and external environment. At the end of this part, analysis the reasons why there are so many problems in implementation of loan risk classification. Based on the results of the survey, Chapter four put forward the reform and improvements of China's rural credit cooperatives credit risk management and measures of the main countermeasures. Chapter five is the conclusion of the study.There are four main conclusion of the study.Through the study, due to the historical development reasons and the special nature of such services, the implementation of China's rural credit cooperatives credit risk management approach to loan risk classification state-owned commercial banks lag behind about four years. And the pilot encountered with certain state-owned commercial banks a similar situation, but there are many different obstacles. As a result, the management implementation of loan risk classification is different from state-owned banks have a certain objectivity.On the survey of 24 rural credit cooperatives in Heilongjiang province, summed up the management issues of credit risk classification related to the status quo of rural credit cooperatives: the implementation of loan risk classification is not in place, sorting the results of superficial and rough; there is distance between credit stuff number, professional quality and the loan classification requirements; the loan funds after the credit more difficult to track, affecting the timely update of loan classification; punishment and incentive systems are not complete, lacking of the driving force and binding force to credit stuff; hardware facilities and software systems lag behind, is not conducive to improving the management of loan risk classification level. The paper introduced"Decision Tree Analysis"to loan risk classification criteria, and improved the decision tree analysis according to different credit objects, that decision tree analysis will be the loan for different users with different choice of factors. Because of this, every detail that may affect the risk classification of loans is known, so that the classification criteria as a result of bias caused by subjective judgments greatly reduced to ensure the accuracy of loan classification.Through research, proposed the idea of quantitative criteria of loan risk classification management in rural credit cooperatives, and then set out to strengthen the internal management, improve the external credit environment and legal system building, rural credit cooperatives to improve the management of credit risk classification level of the main supporting measures.