Research On Farmers’ Microfinance Risk Management

With the methodology of combining theoretical analysis and empirical research, this Dissertation is intended to explore the effective ways to improve the system of rural micro-finance/credit system from the perspective of building risk management system in China. This is significant for providing reference and basis for guiding poverty alleviation practices, building socialist new countryside, especially for formulating financial policies oriented to successfully building a well-off society in an all-round way by yr2020and promoting national eco-modernization and national rejuvenation and realizing China dream by2050. The research results and innovation points are as follows:(1) after sorting and streamlining the development history of rural micro-finance credit loan and its risk management status at home and abroad, this Dissertation has clearly put forward the idea of building and improving rural micro-finance/credit loan risk management system, and proposed that research thread should be as follows:to strengthen credit system construction and avert loan risk; to improve loan procedure and scatter loan risk; to strengthen loan management to prevent loan risk; to establish imprest fund and reserve fund system to compensate loan risk; and to timely address risk loan to digest loan risk, among which, monitoring and managing loan risk is a major route to reduce loan loss and reduce loan risk.(2) This Article has carried out theoretical and practical analysis of rural micro-finance/credit loan risk management system, the key of implementation is to integrate it into rural credit system construction. It is an effective way to adopt market-oriented measures to stimulate rural residents to stick to moral integrity and stay honest and keep promises, so as to promote socialist credit system. The rural credit system construction is an effective means for reducing rural-involved microfinance agencies’loan risk mainly committed by the Agricultural Bank. Cultivation of creditable farmers and creditable villages is an effective way of safeguarding rights and interests of both parties of the lender and the borrower and thus facilitate farmers’ small-amount loans to turn into favorable recyclable development. (3) After investigating and studying Yiyang Branch of the Agricultural Bank of China during August2008and September2011, this Author found that farmers joint-guarantee and civil servants’guarantee fall into the peak area of bad loans, while through the mode of cultivation of the credit villages, the bad loan rate decreased to zero, while in the mode of company (distributors)+peasants, the bad loan rate is0.5%. Through empirical and practical analysis of rural small-scaled credit risk management of Three-Rural Business Dept. of both Hunan Provincial Branch and Yiyang City Branch of the Agricultural Bank of China to evaluate the micro-and macro-performance level of rural small-scaled credit loans, it is significant to facilitate related government to discover the nature of existed problems so as to provide support to relative departments of local government in formulating small-scaled credit loan policies; and thus provide guidance for operation and decision-making of rural financial institutions. Through practical research to analyze existed problems in institutional building, it is conducive to finding problems, solving problems and thus providing decision-making reference for improving and upgrading strategic measures.