Zhejiang Liandu Rural Cooperative Bank Credit Risk Management Research

Credit risk management for Rural Cooperative Banks, Rural Cooperative Banksonly in broad terms using a variety of means(economic,administrative and legalmeans,and so on)on the management of the activitives of credit activity. it is theimportant content of administration of Rural Cooperative Banks. Credit riskmanagement is directly linked to the scientific and effective than loan quality andeconomic benefits of rural cooperative banks. In the context of today’s economicreform, Rural Cooperative Banks in the operation of credit funds of credit funds ofproper functioning and to address various economic relations and avoid risks in therisk, reducing the risks in order to achieve greater economic benefits. These are RuralCooperative Banks had to face several problems in the process. To this end, thescientific understanding and mastery of credit risk management function, and theories,is the key to improving management of Rural Cooperative Banks credit, is alsoexploring Rural Cooperative Banks’ credit risk management under the condition ofsocialist market economy reform Foundation.In2003, the establishment of first Rural Cooperative Bank in China—NingboYinzhou Rural Cooperative Bank and since then Rural Cooperative Banks,nationwide, and a rapid development of Rural Cooperative Banks. After10years ofreform practice. Rural Cooperative Banks in general are to promote local ruraleconomic development, efficient service for ‘Three agricultures’, plays anirreplaceable role in maintaining social stability, and has accumulated some usefulexperiences. At the same time, Rural Cooperative Banks with ‘cooperation’ nature ofthe practical credit management activitives, there have been many developments inthe issues. On the whole, improve credit risk management of Rural CooperativeBanks is the important approach to guarantee the sustainable development of RuralCooperative Banks.In view of the private economy in Zhejiang Province of China the most typical andmost mature areas of Rural Cooperative Bank development, the Liandu of Lishui inZhejiang Rural Cooperative Bank has been selected as samples, with the finance,management, theory of development economics, from the basic principles of control,business processes, incentive and restraint mechanisms, to its credit risk managementcontrol system design more comprehensive comparative study of the dynamics of the situation. To the research of future research on credit risk management of China’sRural Cooperative Bank has a certain experience.