Construction Of Rural Credit Cooperatives Financial Risk Early Warning Index System

The rural financial structure is mainly composed of financial institutions to form ofcooperation, financial cooperation mechanism can provide the development of agriculture andrural economy is very high quality service and strong financial support. And rural creditcooperatives is the major financial institutions in rural areas, it has been burdened with theresponsibility of the funding for agricultural economy development. Throughout the currentrural financial market, rural credit cooperatives online coverage and fund share is far morethan other financial institutions, is the absolute main force of local finance. This almostmonopoly management for rural credit cooperatives profitability provide strong support, butfinancial institutions such as Banks, also hidden in behind the huge financial risk. In order tomake the development of rural credit cooperatives in the rural areas in the future canprovide more quality services and strong financial support, effective prevent and reduce thehappening of the financial risk of rural credit cooperatives is very critical.This article carefully studied the specific situation of the financial risk of rural creditcooperatives, and insight into its security in the capital, analyzing the causes of all kinds offinancial risk, so as to find a way to defuse financial risks. On the basis of current or historicaldata, to build a financial risk early warning system, is of a good way. Because it not only canmeasure the financial status, predict the future level of financial risk, and put forward themethods to prevent or defuse financial risks. Therefore, this article elaborated how to establisha comprehensive financial risk early warning index system of rural credit cooperatives, thekey to this system is how to build financial risk early warning index system. The types offunds in accordance with the rural credit cooperatives have to classify financial risk, and thenrespectively to construct the corresponding index, using the analytic hierarchy process (AHP)to set the weight. Finally, build the good index system combining with G bank in2012-2014financial early warning information, analyze data, and it is concluded that the presentfinancial risk early warning mechanism in the process of implementation of rural creditcooperatives of deficiency, and gives corresponding suggestions.