Research Based On Credit Risk Management Of Rushan City Rural Credit Cooperatives

Rural credit cooperative, which is known as China’s rural economic and financial service provider, is playing a vital role in the development of rural construction for a long time. Its purpose is to increase farmers’ income and agricultural production, help farmers go out of poverty and so on. It has another fame called the main force of rural finance. The rise of microfinance is a milestone in the development of China’s rural credit business.With the popularity of microfinance business, farmers no longer feel strange to it. The effect is significant and can relief farmers’ loaning difficulty timely. At present, the rural credit cooperative can be seen everywhere in our country. The fundamental purpose of microfinance service is to serve the farmers. Therefore, its risk and loan quality will directly determine the future development of rural credit cooperative. Although it has experienced more than 20 years of development and improvement, there are still a lot of obstacles in the process of China’s rural credit cooperative in the implementation of microfinance. Especially in recent years, there are still a lot of problems in the management of microfinance in rural credit cooperatives, especially in the risk control, the microfinance risk situation is increasing year by year. The purpose of this study is to find the possible risk through analyzing and summarizing the microfinance business of Rushan city rural credit cooperatives during its running process, and trace back to find the reasons.Then we put forward some related suggestions to guarantee the stability and sustainable development of microfinance, so that it can continue to seek benefits for farmers, to better support the economic development of rural areas.Based on the above problems, this thesis is divided into five parts to study and analyze. The first part is the introduction, which introduces the background and significance of the topic, summarizes the relevant literature at home and abroad, points out the characteristics of this paper, the key issues to be solved and the corresponding research ideas and deficiencies. The second part is a summary of the relevant theory of rural credit cooperatives microfinance, the use of some basic theory to elaborate the definition of small loans, research results and so on. In addition, the thesis also studies the credit theory through the risk issues. There is a specialized theory introduction of rural credit cooperatives microfinance risk and the coping strategy for dealing with the risk. The third part through in-depth Rushan rural credit cooperatives of on-the-spot investigation, the basic situation of rural credit cooperatives in the Rushan and actual cases of comprehensive analysis, found the Rushan agricultural letter society credit riskmanagement exist " Two is not in place" and " Two is not reasonable". They are the loan after the inspection is not in place, staff training is not in place, system implementation is not reasonable and process design unreasonable, respectively. We found the internal and external reasons for the risk control of small loan, and summarized the current status of the micro credit risk control. The fourth part is the suggestions and improvement measures for the control of small credit risk of rural credit cooperatives in Rushan. Through the first few parts of the theoretical study and the case study of Rushan City, according to the actual problems, the corresponding risk management measures and preventive measures are designed on this basis. The former includes micro mechanism design, pattern design,security mechanism and so on. The fifth part is the summary of the whole thesis, including the innovation of this paper and the problem has been solved, and draws a conclusion. To predict the last of China’s rural credit cooperatives microfinance development trend in the future, and points out the limitations of the thesis and the problems to be studied further.This paper will fully integrate theory with practice, in view of the problems existing in Rushan City, rural credit cooperatives microfinance risk management in property right system, management system, credit risk measurement system and put forward corresponding views. The author believes that it can improve the quality and supervision of small loans from the aspects of improving the system of property rights, management system, credit risk quantification and so on. At the same time, the author also puts forward the strategies to deal with the risk of micro credit, which can be used for reference by other areas of the rural credit cooperatives.