Research On Credit Risk Assessment Of A Rural Credit Cooperative Based On AHP

Rural credit cooperative is extremely important financial institution, it plays anintegral role in promoting local economic development, rural services. However, with theincreasingly fierce competition in the credit business, rural credit cooperative facingenormous challenges and impact. Therefore, to the rural credit cooperatives to establish acredit risk evaluation system, to carry out scientific and effective evaluation of credit risk,control and better credit risk.This paper first analysis the research background and significance, then summary thehistory and present situation of the study. Combining the characteristics of rural creditcooperative and principles of indicator system establishment, this paper constructs thecredit risk assessment system. The rule layer includes financial condition of the borrower,credit status of the borrower, rural credit cooperative internal factor, macro-environmentalfactor. Financial condition of borrower includes liquidity, solvency, operational capabilityand development capacity; Credit status of borrower includes repayment willingness andcredit history; rural credit cooperative internal factor includes quality of staff, managementcapability, system implementation and the quality of assets; Macro-environmental factorincludes credit environment, regional economic conditions and legal policy. This paperuses analytic hierarchy process to determine the weight of each index, the weight offinancial condition of the borrower is0.5638, the weight of credit status of the borrower is0.2634, the weight of rural credit cooperative internal factor is0.1178, and the weight ofmacro-environmental factor is0.055. Based on the index weight and questionnaire, thispaper evaluates the credit risk of a rural credit cooperative. The credit risk assessmentindex is3.95; the rural credit cooperative internal factor has the greatest impact on thecredit risk, followed by the financial situation of the borrower. Finally, this paper putforward the credit risk control measures.