The Risk Prevention Research Of The Village Bank Loans Based On The Market Positioning

The establishment of the rural bank is an innovative approach solving the financial problems in village areas,which is extremely important to financial improvement of village areas.The aim of rural bank is serving the villagers, countryside and agriculture. Small enterprises and peasant household are its principal clients. The market positioning of village bank is different from the big commercial banks about client,market and financial products.CBRC stresses that the rural bank should first of all meet the demand of the improvement of local peasant household,agriculture and agricultural economy,when it makes loans.Now the principal business of the village bank are deposits and loans,so effective loan risk prevention is a important part of the village bank's risk management. Because of the uniqueness of the market positioning and the customers ,the loans of the village bank will have potential risks. Also the village bank lacks consciousness in risk management,and is short of an efficient risk prevention mechanism,which may threaten its operation and sustainable development.So its necessary that make the research of the risk prevention about the village bank.About the reaerch of the risk prevention,first I will research the status quo of the loans,then predict the needs of the loan business in rural areas,by analysis the loan characteristics,the feature of the financial needs and financing structure. Summary the feature of the village bank's loan and the potential risks.The risks of the village bank will be measured,identified and warned. Building the prewarning indicator system according the actual situation of the village bank.Finally the paper will introduce the precautionary measure of the village bank's risks in the five ways about internal control system,risk culture,employee qualities,effective information systems and the development of personalized financial products.The first innovation research of the paper is combine the loan demand and the village bank's market positioning,predict the loans demand by analysis loans dropped of the financial institutions and financing structure of rural economic entity.The other innovation research is establish the risk prevention system of the village bank.Analyze experience of risk prevention in foreign commercial bank by making use of comparative analysis.Get worth learning experience of risk prevention through consider actual situation of the Village bank in China. Finally raise the measures of risk prevention for the village bank based on the experience of risk prevention in foreign commercial bank. Through the research,the village bank should pay more attention to the actual situation of operation and market conditions,enhance the risk prevention by improving their internal system.