Based On The Method Of Principal Components Of A Regional Credit Unions Risk Evaluation And Analysis

With the increasing transparence of China's financial market and changes of its rural environment, the rural credit cooperatives (hereafter RCCs) have become a powerful supporting pole for the development of rural districts as well as the whole national economy. Therefore, how to evaluate the level of financial risk of the RCCs has gradually been a focus in the relative research field.Developed countries have a series of theories and practical models based on their mature market-oriented economic background. However, due to some reasons, there has not been a unified, standardized and effective system which includes mathematical evaluation of risk for RCCs in our country.Here we adopt a mathematical method to measure the risk level of rural credit cooperatives. By looking back on the history, analyzing the present situation and evaluating methods of rural credit cooperatives in China, we conclude the basic characters of our rural credit cooperatives and try to formulate a blue print of the system for its risk evaluation.This paper gives a little further exploration on those following aspects:First, with China's implementing its reform and open policy as a breakthrough, this paper gives a review on the history of China's rural credit cooperatives' development separately since the country's foundation until now. Throughout that procedure we conclude the basic characters of China's RCCs.Second, this paper gives a general view of the present measure methods for risk in China's rural credit cooperatives.Third, based on the existed achievement, this paper makes a little further exploration by analyzing those main principals and comes up with some advice on risk supervision and management according to the results from the former analyses.Forth, this paper combines two different ways of risk measure and tries to set up a new evaluating system which includes some macro indexes. And there are also some suggestions on how to make the evaluating system more sound and effective. Main analyzing tool: SPSS11...