Research On The Credit Risk Prevention Mechanism Of Heilongjiang Province Rural Credit Cooperation

As one of the major agricultural provinces in China, Heilongjiang Province has achieved significant progress in the development of rural credit cooperation. However, with the dynamic changes in the credit market and the strengthening of the financial system reform in Heilongjiang Province, Heilongjiang Province now is facing great challenges in the loan demand of farmers and the control of credit risks in rural areas. Based on other researches, this dissertation built a prevention mechanism of credit risks for Heilongjiang Province according to Heilongjiang Province Rural Credit Cooperation’s characteristics, and the mechanism might be meaningful for the sustaining and healthy development of the Heilongjiang Province Rural Credit Cooperation.Firstly, this dissertation analyzed the basic information, current situation of the Heilongjiang Province Rural Credit Cooperation. The problems that occur during the prevention process of the credit risks were analyzed as well. Then, the reasons that cause the credit risks in the Heilongjiang Province Rural Credit Cooperation were discussed from two aspects including internal causes and external causes. The internal causes include the incomplete survey, irregular investigation, and insufficient inspection. While the external causes include government policy, industry characteristics and credit customers, etc.Based on the risk causes that were analyzed, this dissertation constructed the prevention mechanism of the credit risks for Heilongjiang Province Rural Credit Cooperation from three aspects including before loaning, during loaning, and after loaning. The risk prevention mechanism before loaning includes prevention training, risk-identifying, and risk survey. The credit risk prevention mechanism during loaning includes credit evaluation mechanism, the separation mechanism of approving and loaning, and pre-warning mechanism. The risk prevention mechanism after loaning includes post-lending inspection analysis mechanism, information management mechanism, and risk compensation mechanism.At last, the methods to ensure the application of the prevention mechanism of credit risks were analyzed from both internal and external ways to enhance the enforcement of the credit risk prevention mechanism in the Heilongjiang Province Rural Credit Cooperation.