The Research Of Microloan Risk Control On Ningbo Postal Savings Banks

Microloan is a credit service available for vulnerable groups such as impoverished population and small businesses. It aims to provide financial service for the underprivileged classes. Microloan has made great contribution to settle farmers’ loan issues, support merchants’ production and operation, and promote the development of national economy. Foreign goverments have kept putting great efforts to provide the large number of microloan customers with premier financial service. China, with its speedy economic and social development is also going to confront this challenge. PSBC has launched microloan services since2005. After eight years, by taking the initiatives, PSBC has made explicit market positioning, accomplished strategy transition, and acquired practical experience and satisfied operational result. However, there are many problems that constraint the sustainable development involved in the microloan risk management. Therefore, in case to develop a better microloan business, the key point is to solve these problems.This Paper studies PSBC’s microloan risk management and control in NINGBO area. It has conducted in-depth exploration and analysis focusing on the management measures and the causes of problems in PSBC’s microloan risk management and control. This paper argues that the reasons for PSBC’s microloan risk are multidimensional, the main of which includes the debtor-creditor relationships, management of internal risk and control, governments’ administrative interventions, credit environment, and legal system constructions. With regard to PSBC’s microloan risk management, this paper gives out relevant measures and policy suggestions.