The Research On The Credit Risk Of Jiangsu Rural Cooperative Financial Institutions

As the main business of financial market in rural area, rural cooperative financial institutions, including rural commercial bank, rural cooperative bank and rural credit union, are playing more and more important role in the development of the rural economy. Rural financial market is still in the less developed stage in China. The credit business is the main business of rural cooperative financial institutions, and credit risk is also one of the most important financial risks faced by the rural cooperative financial institutions. Due to historical conditions and their own factors, rural cooperative financial institutions have low credit risk management level and increasing credit risk. With the increasingly intense competition in financial markets, more and more credit risk management problems affected the capital safety and management benefit seriously. Therefore improving the credit risk management level of the rural cooperative financial institutions is imminent.Studying based on the operating data of fifty counties, the paper uses comparative analysis method to describe the current situation of credit risk management of rural cooperative financial institutions in Jiangsu province from specific indicators like non-performing loan ratio, loan-to-deposit ratio and so on. And the paper sums up the problems existing in the management of credit risk and deeply analysis the root causes of credit risk and possible risk factors from two aspects of internal cause and external cause. In the end, the author puts forward the feasible credit risk management solutions to provide practice reference of rural cooperative financial institutions, to promote the construction of modern credit risk management system and to improve their competitiveness and the ability to resist risk.The paper consists of five parts. The first part introduces academic background, purpose and importance of the paper; the second part is theoretical overview about the domestic and international risk management research and the related basic theories of credit risk; the third part is the analysis of current situation, describes the credit risk by using data to compare the credit risk in different parts; the fourth part is the summary of the problems and the analysis of the causes; the fifth part is the conclusion and policy recommendations, proposes adaptive solutions to solve the credit risk problems.