Research On Credit Risk Control Experience Of Underdeveloped Country Rural Credit Union

Rural credit union as a main support force for China’s rural financial, with the development of China’s rural economy, must develop faster. In the building of a new socialist countryside, we must speed up the reform of rural credit cooperatives in the system and operating mechanism, enhance financial strength, and improve competitiveness, so as to become a booster of local economic development, to promote the harmonious development of the rural economy. The operating activities of the rural credit cooperatives should follow the basic principles of security, liquidity and efficiency. China’s rural financial market is still relatively backward, the loan business is still the main operations of the rural credit cooperatives, and therefore, credit risk is the main risk faced by rural credit cooperatives. For all the financial institutions, the credit risk is inherent. Credit risk cannot be completely eliminated, only by strengthening the risk management of credit business and taking the appropriate measures to reduce the level of credit risk.According to the relevant theory of credit risk, we pointed out that for the less developed county credit cooperatives, there are two aspects of external and internal factors led to the credit risk, The former mainly includes the county territory economy development situation, the information asymmetry, the loan object special as well as the legal system; The latter mainly includes the supply of credit concentration, dispersion management, internal risk control and other risk factors. Through on-the-spot investigation and collecting related information from DaYing rural credit cooperatives, we explored DaYing rural credit cooperatives on the way of how to control the credit risk and summarized some successful practical experience of the credit cooperatives. Such as Improving the credit institutions, completing the credit business internal control system, strengthen process management, implementing the bad assets recovery, and improving the staff overall quality. I hope that the research can provide some new ideas for the reform and development of the rural credit cooperatives in our country.This paper is based on DaYing rural credit cooperatives credit risk control as the research object, analyzed the credit risk control experience of underdeveloped county rural credit cooperatives. This paper is divided into four parts:the first part is the introduction part, mainly summarizes the paper selected topic background and significance, literature review, writing purpose and innovation and deficiency; The second part mainly analyzed credit risk factors, from the characteristics of credit business and risk of rural credit cooperatives, points out that there are two aspects of external and internal factors that can lead to credit risk, and carries on the detailed analysis; The third part research DaYing risk control experience to explore the research of rural credit cooperatives, first introduced some achievements in the aspect of DaYing rural credit cooperatives credit risk control, and then analyzes the characteristic of credit risk management; The fourth part is that based on the above investigation and research, summarized full text, and put forward the comprehensive strengthen credit cooperatives credit risk control.