Research On Agricultural Loan Risk Management In A Bank Of Jilin Province

With the further development of China’s rural economic reform, agricultural loans as animportant part of agricultural development supports in our country have played afundamental role in promoting the agricultural science and technology progress, improvingagricultural infrastructures, improving the farmers’ income and etc. A Bank in Jilin Province(JL-AB), as an important force serving agriculture, farmers and rural areas, annuallyincreases the proportion and the amount of agricultural loans input and tentatively explored asustainable development mode with certain spreadability and functionality. However,agriculture loans are also facing many risk factors, such as credit, market and operation. Torealize the sustainable development of agriculture loans, it requires to start from the loan riskmanagement and reveal the existing problems and causes in the agricultural loan riskmanagement so as to adjust accordiingly related agricultural loan risk management measuresfrom the mechanism and achieve the goal of reducing the agricultural loan risk.Through the organization and analysis of JL-AB’s first hand data and materials, thisthesis summarizes the influential factors of the agricultural loan risk management, identifiesthe main factors through factors analysis, and puts forward countermeasures and suggestionsto reduce agricultural loan risk. The thesis is divided into the following several parts. Thefirst part elaborates this thesis’ research background and significance, makes clear theresearch method and route, and lists the structure and the main content. The second part isdefinitions and basic theories which firstly defines the related concepts of agricultural loansand risk management and points out the characteristics of the agricultural loan riskmanagement. The third part focuses on analysis on the present situation of JL-ABC’sagricultural loan risk management. It analyzes the present risk situation of JL-ABC’sagricultural loan base on the scale, structure, quality of financial assets and etc,comprehensively analyzes the situation of credit risk, operational risk, market risk andeconomic capital, and bases on JL-AB’s practice to analyze the existing main risks of theagricultural loan from both problems and causes and explain their impact scopes. The fourthpart is the empirical analysis of JL-AB’s agricultural loan risk which generalizes the data ofrisk management, applies the method and procedure of factor analysis to identify the mainindicatiors that influence risk management proficiency and finally draws a conclusion on risk management and control. The fifth part proposes countermeasures and suggestions to reduceJL-AB’s agricultural loan risk which include constructing a comprehensive risk managementsystem, establishing related credit risk-control mechanism, reinforcing operational riskassessment and continuity management, reinforcing market risk monitoring and management,cultivating the entire personnel’s risk management awareness, strenthening related trainingson the agricultural loan management. The sixth part is the summary of the thesis.