Research On Risk Management Of Microcredit In Rural Credit Cooperatives In China

Since1970s, microfinance played a significant role in addressing the world poverty. As a strong policy-color credit business, micro-credit loans to farmers were characteristic brands in rural credit cooperatives, which effectively alleviated the problem of loans to farmers after many years of development, and which achieved good social and economic benefits. On one hand, microfinance played an irreplaceable role in support of farmers’income and rural economic development. Whereas, on the other hand, with this business gradually institutionalization, Rural Credit Cooperatives (RCCs) performed at the imbalance between risk and reward, in which the risk of microfinance has become an important factor restricting the rural finance services and rural economic development. The implement of scientific and effective management to credit risk, is essential for the sustainable development of the rural credit cooperatives, in the macro-background when our country continue to increase investment in the "three rural", and wave of rural finance reform upon wave of calls.Based on this, I started from theories of credit risk and risk management, to a careful analysis of various risks in present microfinance business, and learned from the successful experiences of foreign rural cooperative economic model combined with China’s national conditions, and then put forward a number of measures recommended to improve micro-credit risk management level of China’s rural credit cooperatives.The main contents include:In the first Chapter, we give a brief review of the status of the development of microfinance and microfinance risk control in the major research literature, and on this basis, come up with the focus and ideas of this study.In the second Chapter, we summarizes relative theories of microfinance risk management, from the general theory of finance risks, and connotation of credit risk in RCCs to procedures of credit risk management, and basic theories of microfinance risk control system.In the third Chapter, we analyze the microfinance risk profile of RCCs and risk management problems in china. First of all, we describe the overall situation of the development of RCCs; then analyze the credit risks that RCCs was faced with, and risk management problems that need to be solved (elaborate from the external environment and internal management on risk management dilemma, respectively).In the forth Chapter, we enumerate foreign rural cooperative financial system, such as rural cooperative financial system in Germany, France, the Unites States, Japan and India, in which we sum up successful experience of credit rick management on legal, auditing supervision system, national policy support, and internal management system.In the fifth Chapter, we combine the problems with foreign cooperative financial risk management mechanism, and then propose correspondent strategies to farmers’microfinance in RCCs of china. Take effective measures from the government, microfinance institutions and borrowers:firstly, the government-led, build a favorable external macro environment in rural areas; secondly, borrowing farmers regulated their own behavior to improve rural credit environment; the third is to strengthen its management of rural credit cooperatives, ameliorating the internal risk control system of micro-credit.In the last Chapter, Hengyang rural credit cooperatives in Hunan Province as a cases, we site visited and analyzed the current situation and existing problems of their risk management, and then proposed to optimize the design of micro-credit programs adapted to local conditions.In short, by normative analysis and case studies, we systematically and comprehensively discussed the micro-credit risk management dilemma of rural credit cooperatives, and built the overall framework of general risk management, which has important theoretical and practical significance in standardized and scientific development to china’s rural microfinance and the sustainable advancement of rural credit cooperatives.