A Study On The Risk Control Ability Evaluation Of China 's Villages And Towns

Since the reform and opening up, China’s rapid economic development has made remarkable achievements one after another, but behind the rapid economic development, the uncoordinated economic development problem between urban and rural are slowly emerging. In order to alleviate the sharp contradictions, a reform in the field of rural financial system quietly opened the curtain. Rural financial services institutions as a major force in rural areas must also conform to the trend of reform, innovation and contribute their efforts to the new socialist countryside. But China’s current rural financial market faced with the predicament of disorder, a massive outflow of funds and lack of financial institutions networks, resulting in private capital is difficult to have a formal financing channels. It is under the rural financial chaos, rural banks with ease Supply and Demand of rural mission, boarded the stage of history of rural financial services.Rural Banks which are established in the rural areas of China are new rural financial institutions, their function is to provide financial services to rural areas, agriculture and farmers. In order to better fulfill the mission, the state has introduced a dozen important documents, for the healthy development of rural banks. However, in the early stages of development, the rural banks have suffered a global financial crisis, so we have to pay attention to its growing number, while more concerned about their ability to manage and control risk.Risk control of rural banks is the study subject in this article. Through extensive literature review, the author identified this article’s research idea. First introduced the nine years development history of rural banks, and then combined with the trend analysis and PEST analysis to prospect the future development of rural banks. And then we discussed the risk control mechanism and risk control status. Then, learning the sophisticated risk control experience from domestic commercial banks and foreign Community/Grameen banks, rural banks get many Inspiration of complete comprehensive risk control. Thereafter, the article turns into quantitative analysis. The author builds rural bank risk control measure index system by AHP, and gives reviews of the risk level of control of rural banks by fuzzy comprehensive method. What’s more, use a case to verify the results of risk control ability of rural banks that is not very strong, particularly in the area of risk database construction, professional risk management personnel reserve, rural areas credit evaluation system and so on. More aspects have a certain distance away from the regulatory requirements, rural banks should focus on strengthening in the future. Finally, in accordance with the foregoing analysis, we put forward suggestions to improve our rural bank risk control.