The Study On The Risk Control Of Small Loans To Rural Households In Guangdong Rural Credit Cooperatives

The Rural Credit Cooperative(RCC) is the driving force for rural financedevelopment,as it has made ourstanding contributions to the increase of agriculturalproduction、farmers’ income and the development of rural economy in rural area on along-term basis.And small loans to rural households play an important part in RCC’sportfolio and it will directly affect RCC’s asset quality.The RCC of Guangdong hasbeen positioned at rural area since2003and it grows quickly eversince.Moreover,improving the quality of small loans to rural household s is the key toRCC’s management and development.In practise,bad credit standing and failed incredit management make small loans to rural households become a high-riskbusiness.As a result,finding out a way to avoide the risk of small loans to ruralhouseholds is important to RCC of Guangdong.This paper mainly focus on petty loan of The RCC of Guangdong and analysis themajor risk of small loans to rural households.In order to find out the internal andexternal issue that constraint small loans to rural households management,the writerstudy about the current condition of Guangdong small loans to rural households Thewriter select Shaoguan as an example and use panel data to research the main factorsthat influence the petty loan of The RCC of Guangdong,due to Shaoguan is welldevelopped in agriculture.At last,the paper analysis the risk situation and cause ofGuangdong rural credit cooperatives,then come up with some countermeasure of riskmanagement and provide a few suggestions.