Risk Prevention Of Farmers' Loans In Agricultural Bank Of China

China is a traditional agricultural country, the rural population accounted for the majority, but with the introduction of the economic situation of the downstream and related policies of expanding domestic demand, the impact of the construction and development of rural areas to the overall development of China’s economy growing, while in rural areas economic development but also closely linked with the development of rural finance.Since 2004, the CPC Central Committee issued a seven consecutive to the "three rural" as the central theme of the "Document",2010 Central "Document" stressed the need to actively guide social capital into the microfinance field, accelerating the development new types of rural financial institutions. China from the 1990s began to explore the development of micro-credit, and gradually began to solve the problems of farmers’ loans, loans difficult "and so gradually to improve financial services in rural areas.But in rural areas, due to the farmers virtually no collateral, while agricultural production but also has a lot of uncertainty, so for rural finance, innovation model, financial literacy is important, but the financial institutions, especially those with credit cooperatives, rural commercial banks, rural cooperative banks and other institutions own the majority of the rural market in terms of development and security, they are facing a variety of risks and challenges, therefore, in this context, the study of farmer loans risk loans to farmers to identify critical risk prevention mechanism.2014 for the banking sector in terms of non-performing loans continue to rise in pressure, the CBRC also constantly stressed the need to strengthen banks’ risk prevention, and for the Bank of Agriculture and Commerce, rural cooperative banks in terms of loans to farmers to do risk prevention, reducing the probability of the risk occurring For the banks themselves, for the farmers, the development of the banking sector and the entire economic development are of great significance.Rural financial institutions as the main force of rural finance and contact farmers financial ties, is the main provider of capital and financial services in rural areas, it is not only the level of credit risk is directly related to their own survival and development, but also related to China’s agricultural structure restructuring and rural economic development. But there are still many rural financial institutions, especially credit risk, if not effectively manage and control risk, will severely restrict the development of rural financial institutions, affecting China’s new rural construction. Loans to farmers as rural financial institutions are now the main focus of future credit products and promote their products, it risks a great impact on rural financial institutions. This paper describes the proportion of non-performing loans of financial institutions in rural areas is higher, the risk of frequent cases of the status quo, according to different standards of risk participants will be divided household lending risk credit risk, management risk, policy risk and environmental risk into four categories, and specific analysis manifestations and causes of risk, and discusses the risk responses.