Study On Risk Management Of Forestry Property Mortgage

With the new forest-right system reform bringing opportunities to the development of forestry, the enthusiasm of forestry operators gets motivated. But the key factor of forestry business-cash restricts the sustainable development of forestry. On the forest resources assets as collateral, to gain forestry business capital, is the one of effective ways of solution for sustainable development of forestry financing.However, as an industry, forestry has great differences from other industries, such as the long growth cycle, the high natural risk, the big capital demand and the low profits, all these characteristic make it has be a high-risk industry. The supervision of forest resources assets in the mortgage has considerable differences to others. Therefore, it has the vital significance to discussion and researches the risk of forestry property mortgage, reduce bank credit risk, and promote the healthy development of forestry property mortgage.On the basis of sorting out the related the domestic and foreign literature and policy of risk management of forestry property mortgage, combing with constitutional economics, property and risk management theory, from risk management angle, the paper discusses and analyzes the risk management of forestry property mortgage. First, the paper summarizes the connotation of the forest right mortgages and the development situation of forestry property mortgage in China. Then, the paper analyzes the partial risk of forestry property mortgage, discusses the reason of risk, and analyzes the game between the bank and the forestry operators, so as to explain the necessity of risk management. Finally, the paper establishes the risk management mechanisms of forestry property mortgage form risk prevention, risk transfer and running environment. Taking Chongyi County in Jiangxi province for example, the paper analyzes the risk management problems and measures of forestry property mortgage in Rural Credit Cooperatives of Chongyi and provides practical reference for the risk management of forestry property mortgage.