Research On Microfinance Risk Control Of Rural Banks In China

The village bank acts as the dominant force in the new rural financial institutions in China, since 2007 since the rapid development of the initial points. As of 2014 September, a total of the establishment of village banks has more than 1100. The rapid rise of rural banks, has played a positive role to the deficiency of the revitalization of rural financial market, the introduction of competition mechanism, improve the rural residents and Small and micro businesses money demand phenomenon. Especially the microfinance business, accounting for more than 90% of the village bank, is one of the main business of village bank. Micro credit business to carry out effectively alleviate the difficult problem of financing in the rural area of our country, has poured into the fresh blood for the rural economy, farmer life to bring hope.But China’s rural banks as a new form of organization of rural finance, the management system and mechanism of risk management is still in its infancy and exploration stage. It has opened the village bank, short operation time, development is not sufficient, risk aversion ability, risk control ability of micro credit business needs to be improved. Therefore, should actively expand rural bank micro credit risk management ideas, improve the rural bank micro credit risk control level, to gradually establish and perfect the risk control system of village banks.This article from the basic theory of rural banks and microfinance starting, through the development of introduction of the current situation of rural banks in China on microfinance, micro credit risk control process to conduct a comprehensive analysis, based on the multiple factors and variables model, trying to find ways to improve our country village bank micro credit risk control level, to perfect the risk control system of village bank.