Research On Risk Management Of Zhejiang Shangyu Rural Cooperative Bank Loans

In recent years, as China’s monetary policy and the rural economy continuesto develop, China’s rural cooperative banks have made rapid development, hasbecome an important force to support the construction of the rural economy, asChina’s economic development has made a significant contribution. However,can not be ignored is that with the continuous development and growth of China’srural cooperative banks, assets and credit scale of rising violence gradually leakout a lot of problems.Credit risk is the most important risk facing China’scommercial banks, therefore, inevitable risk management of commercial bankscredit risk management as the core management. Especially in the recentfinancial crisis, the market environment is deteriorating in the background,lending an overall decline in the quality of commercial banks, the NPL ratioappears on the rise. Credit business is the core business of banking, credit risk adirect threat to the safety of funds of commercial banks, how to prevent andmanage credit risk as the primary task of the commercial bank risk management.In this paper, the theory of risk management, combined with currentdevelopment of Zhejiang Shangyu Rural Cooperative Bank, through the analysisof its credit risk management processes and methods to identify the presence ofits credit risk management issues. Based on this, we propose Zhejiang ShangyuRural Cooperative Bank credit risk management measures and recommendationsto be taken. First, the risk of regulatory proposals for a comprehensive qualitysystem. Specific measures: a sound corporate governance structure, strengtheninternal controls and operating procedures standardization of credit, loans toimplement three check system; secondly, to establish an effective credit riskidentification and evaluation system. Specific measures: improve banks’ riskmanagement awareness, enhance the level of credit risk measurement andrecognition, improve financial analysis system; third, we must optimize the loan structure. Specific measures include: strict loan guarantees to strengthen the NPLcollection, optimize the structure of credit assets, reduce loan concentration risk;finally to strengthen personnel training and credit culture.