A Rural Credit Cooperatives Credit Risk Prevention And Control

With several years’ reforming, credit systems of Chinese rural credit unions are to be more and more perfect, and the scale is also growing. But non-performing loans and other credit cooperatives historical issues are yet to be resolved, particularly the credit risk has not been effectively controlled. The relevant regulations system is not perfect, which seriously affected the development of rural credit cooperatives. Moreover, the development of rural credit cooperatives gradual emergence of some new trend:to actively guide new emergence credit products to enable them to sound and rapid development, establishing a risk rating system, to improve the non-performing assets system, to make audit lenders more compliant, reducing the proportion of bad loans and risk. To solve a series of problems which limit the development of rural credit cooperatives and new era of emerging credit crisis, has important practical significance.On the basis of a comprehensive credit risk management theory, this paper expounded financial credit status quo and problems of A credit cooperatives, and analyzed the causes of the problem from the external environment and internal management. It presented a credit risk assessment model, and constructed an index system to organizational structure, market credit risk, operational risk and liquidity risk as the core, and thus devised a risk management system include risk identification, prevention and control, monitoring and control. Finally, the paper presented safeguards to reduce credit risk of A credit cooperatives.