The Research Of Non-performing Loans Of Kuandian County Rural Credit Cooperatives

Rural credit cooperatives are collective cooperation financial institutions organized on a voluntary basis in rural areas, and their purpose is to provide financial services for farmers and commune members. They are financial institutions invested by farmers, with funds served for the loan demand of their stake-holding members with priority, conducting democratic management, and providing support for the economic development of agriculture, farmers and rural areas, and it is an important part of China’s financial system. Due to its special environment, specific objects faced, it is bound to form a large number of non-performing loans. Non-performing loans cause poor quality of rural credit cooperatives’assets, weakened profitability, and increasing losses year by year, which has been a serious threat to the survival and development of the rural credit cooperatives, and is also related to the rural stability, agricultural development and farmers’ income growth.According to related theories of economics and finance, this paper analyzes the status and the causes of non-performing loans of rural credit cooperative in Kuandian County, and makes in-depth study on non-performing loans management of rural credit cooperative in Kuandian County. The articles cites some of the operating data of Kuandian County Rural Credit Cooperative, so that the analysis has a certain objectivity, hoping it can have certain referential significance for the management of non-performing loans of Kuandian County Rural Credit Cooperatives.First of all, in Chapter I, the paper introduces the theory of non-performing loans; in Chapter II, it describes the credit assets of Kuandian County Rural Credit Cooperatives, discusses the characteristics and the negative impact of non-performing loans; in Chapter III, with Kuandian County Rural Credit Cooperatives’data as example, it systematically describes reasons for the formation of non-performing loans of Kuandian County Rural Credit Cooperatives, including external factors to their own factors, and ultimately provides evidence for preventing the occurrence of non-performing loans.Secondly, in Chapter IV, it defuses the countermeasures of collecting non-performing loans of Kuandian County Rural Credit Cooperatives. Through summarizing experience in collecting non-performing loans of professional domestic banks and rural credit cooperatives, it proposes specific measures to address non-performing loans of Kuandian County Rural Credit Cooperatives. In Chapter V, it specifically proposes precautions to prevent non-performing loans of Kuandian County Rural Credit Cooperatives. It made detailed description from the external environment to the internal factors. These ideas have some significance on the management of non-performing loans of Kuandian County Rural Credit Cooperatives.Finally, through the analysis of non-performing loans of Kuandian County Rural Credit Cooperatives, it draws conclusion of this paper. For collection of non-performing loans of of Kuandian County Rural Credit Cooperatives, we should take a variety of ways such as forming professional collection team, legal means, debt restructuring, and government coordination; for prevention of non-performing loans, we should take measures such as improving the external environment and the strengthening the internal control system, corporate governance structure, human resources development, and science and technology innovation and so on.