Mudanjiang Risk Of Rural Credit Cooperatives Farmers Microcredit Management Research

As China from a planned economic development to a market economy, China’s financial system is gradually reform and improvement, now China’s five major banks:Bank of China, Agricultural Bank of China, ICBC, China Construction Bank, Bank of Communications. The main business of them is still face to the big enterprises, middle enterprises, small and micro enterprises not accounted for the vast majority of the population of farmers. The new rural small and medium financial institutions such as rural credit cooperatives, rural banks, rural cooperative banks are booming, seems to have become the main force of China’s "support for agriculture, rural and urban services," especially the rural credit cooperatives in rural financial institutions is distributed the most extensive and largest, and therefore shoulder more social responsibility so the rural credit cooperatives are important force in the socialist new countryside construction in China. Sustained and healthy development of rural credit cooperatives is not only related to the vital interests of farmers, but also good for the sustainable development of the rural economy and has a profound impact. However, rural credit cooperatives in the process of development and management also encountered many problems and facing many challenges. Therefore, to improve risk management of rural credit cooperatives, especially to improve the management ability of credit risk, which is not only the needs of rural credit cooperatives to improve their own development, but also the need to promote the construction of China’s national economy and new rural construction.This article from the Mudanjiang rural credit cooperatives, seeing hope to be helpful to other financial institutions. First, based on the domestic farmers microfinance risk management to sort out the relevant literature, to define the concept of farmers microcredit, to summarized their characteristics. Studied closely theory of loan risk management, which includes asymmetric information theory, theory of credit rationing, rural financial market theory, comprehensive risk management theory. This section further strengthen the research on credit risk management theory, analysis of the theoretical basis for the subsequent groundwork done, but also to do some theoretical supplement t6the development of the business of farmers small loans. Secondly, this article describe from the established institutions, the development of farmers microcredit and lending risk management of Mudanjiang rural credit cooperatives, and analyzed and summarized its status quo. Then, according to the actual situation of Mudanjiang rural credit cooperatives to analysis the external risk, credit risk and operational risk of the farmers microfinance business. Again, the article use regression analysis to analyzes the factors affecting of farmer microcredit risk, and use the mathematical models to empirical analysis. Make the theoretical knowledge use with the practical research, to quantify a number of factors that affect default risk of farmers small loans to determine the impact and importance of the factors. Proposed clear direction to the risk preventive measures. The last part of the article for the combined analysis of the results of empirical research before facing the risk of the loan, suggest improvements to the risk management of rural credit cooperatives in Mudanjiang. Including the establishment of agricultural insurance compensation mechanism, establish a diversified market service system and scientific market interest rate pricing mechanism; strengthen farmers’ credit awareness, improve and speed up the construction of credit system of farmers related to the enactment and implementation of laws and regulations; raise political consciousness Account Manager, credit quality, as well as raising the loan guarantee mechanisms to improve the overall quality of practitioners. The authors hope that research articles and recommendations made to provide a reference for managers and rural credit cooperatives Mudanjiang relevant sector decision-making.