Research On The Credit Risk Of Cooperative Bank Of Sihong

With the rapidly increasing degree of openness in the financial market, the rural cooperative banks how to adapt to increasingly complex risk environment, how to improve their management level and improve the business environment of banks to survive, has become a major issue calling much attention. Sihong rural cooperative banks, as the first rural cooperative bank successfully changing from rural credit cooperatives in Jiangsu Province in 2005, having 90% of profits is from the interest rate differential between deposit and lending. However, under the inherent flaws in our economic system and the bank internal and external factors, Sihong rural cooperative bank has accumulated huge bad loans in the long time, which is a serious threat to the financial security and stable development. Therefore, the study of the causes in bad-performing assets in rural cooperative banks, as well as the solutions in and out of China, choosing the quick and effective prevention strategies and resolving credit risk theories is not only worthy of study, but also has actual practical significance.In this paper, we use the data from credit departments to study the credit risk of Sihong rural cooperative bank. This paper can be divided into six chapters. Chapter one is introduction. The contents include the background and significance of this study, the definition of related concepts, the research methods, the technique routes, the possible innovation and inadequate. Chapter two is theoretical basis. In this chapter there is introduction of the related theory about cooperative finance and risk control. Chapter three is the analysis of Sihong rural cooperative bank's operation status. We analyze the current Sihong rural cooperative bank operating situation to measure the size of its potential risks. First, we briefly introduce Sihong rural cooperative Bank's operation status, and then it profit from asset allocation and analyze these two aspects in detail.Chapter four is empirical analysis of credit risk in Sihong rural cooperative bank. We use the data provided to analyze the status of credit assets from the size of the risk, risk concentration, loan structure, the scale of loan. And we use the IRB approach, to measure credit risk. Chapter five is the analysis about the causes of Sihong rural cooperative bank credit risk. we try to find the similarities ties and the differences between the risks of Cooperative banks and commercial banks by comparing cooperative banks and commercial banks. The internal and external causes of credit risk were analyzed, and the influence on the regional economy development caused by the credit risk is also considered. Chapter six is the suggestions about how to prevent and control credit risk. Sihong cooperative bank credit risk for the status of its causes, and suggestions put forward relevant measures to accelerate Sihong rural cooperative bank changing into rural commercial banks.