The Construction Of Risk Evaluation Index System Of Rural Cooperative Finantial Institutions And Empirical Analysis

As an important part of the rural financial system, rural cooperative financial institutions (RCFIs) provide powerful support and services for the development of agriculture and rural economy. RCFIs as a kind of bank also face all kinds of risk, so to prevent and control the risk also becomes very important to make it provide more effective financial services in the rural economic development.Firstly, this paper reviews the related literature about rural cooperative financial institutions and the research of risk evaluation and the crisis warning model, and then discusses the risk types and characteristics of RCFIs, and how the risk produced. Secondly, based on the standards of the domestic and foreign financial risk supervision index and the risk assessment and warning index system of RCFIs made by CBRC, this paper constructs a risk evaluation index system of RCFIs from capital adequacy, asset quality, liquidity and profitability. Then, this paper calculates the weight of each index using analytical hierarchy process, and evaluates the risk of RCFIs by the weight arithmetic average.Finally, this paper analyzes the risk of159RCFIs in Sichuan province, and drew a conclusion as follows:The risk prevention capacity of RCFIs is in enhancing; The defensive ability of the risk is still relatively weak; Lack of capital, the high rate of bad loans, poor profitability and low liquidity are the general risk characteristics of RCFIs; RCFIs with weak capability of risk prevention are mainly distributed in the hilly and mountainous areas. And then this paper puts forward five recommendations to reduce the risk according to the risk characteristics of RCFIs.