The Main Risks Of Chinese Rural Banks And Their Detection Tools

Rural Bank regarded as the new creature in Chinese rural financial market makes contributions to "Three Agriculture" greatly. This is accepted by the public. With the rapid development of rural bank over these years, rural banks play an important role in rural areas. The significance of rural bank is more apparent. Currently, Chinese rural banks face a lot of risks, but the main risks including credit risk, liquidity risk and operational risk. Because of the rural banks’ specific characteristics, their capabilities of risk defense are weak. It is very important to research the effective risk detection tools for the prevention and control of risk.This paper is divided into three parts, the first part, including the first and the second chapter, overviews the development of Chinese rural banks. The second part, including the third chapter, describes definitions, characteristics and causes of the credit risk, liquidity risk and operational risk, and introduces the theoretical basis of risk detection tools. The third part, including the fourth and the fifth chapter, specifies the design of three risk detection tools in HSBC Rural Bank. Finally, the fifth chapter gives a summarization.