Research On Credit Risk Of Rural Commercial Banks And Countermeasures

In recent years, with the continuous development of the economy, the rural commercial banks are continually expanding. At the same time financial institutions are facing increasingly complex environment, the difficulties to overcome are increasing. The rural commercial bank’s credit risk has become increasingly prominent.Firstly, this paper analyzes the credit risk profile of HT rural commercial banks, including four aspects. The first one is the non-performing loans and non-performing loan. Influenced by many factors, non-performing loans are getting worse and non-performing loans ratio are rising. The second aspect is the loan industry. Because of its special nature, the loan industry is relatively concentrated. The third aspect is the overall size. In recent years, HT rural commercial banks are under rapid development and the scale has been expanding. The fourth aspect is the situation after the loan is issued. For many reasons, it is difficult to recover after loans.Then, this paper analyzes the reasons of HT rural commercial bank’s credit risk. The reasons are analyzed from both internal and external aspects. The internal reasons are mainly discussed from lending survey, loans, post-loan management and other aspects. The external reasons are chiefly discussed from information asymmetry, credit environment and customer capital recovery situation.Finally, based on previous analysis of the reasons, this paper puts forward countermeasures. The measures for internal reasons include doing the investigative work before the issuance of the loan and the issuance of loans should be strictly in accordance with the process of operation as well as the timely management after loans. All these practices are intended to prevent risks. At the same time, the professional ability for loan officer should be improved, this paper also give advice in aspect of the constriction of the customer credit system and bank culture. As for the measures of external reasons, we must continue to increase publicity of the credit terms and enhance the borrower’s awareness of risk.