Microfinance Risk Management In Rural Commercial Bank

In the last few years time, China’s rural commercial bank credit business development speed is very fast, the balance of loans are increasing every year. Now the various countries of the world bank for grab market share and the market competition is increasingly intense, foreign banks operating in China, challenges it has continuously improve business management mode and experience to the survival and development of commercial banks in china.But in the face of challenges but also provides a rare opportunity for development, banks are using this opportunity, actively carry out strategic adjustment of its business. Micro credit business because of its low cost, capital takes great quantity is small and the profit space and other advantages and attention, and its structure is also start to move towards the direction of adjustment of retail. In 2007, the subprime mortgage crisis occurred America further triggered the global financial crisis, this was a wake-up call to the national rural commercial bank, which must be highly concerned about the possible risks of credit business, the implementation of control and management of the necessary, has the very profound practical significance to improve the rural commercial bank so micro credit risk management level.Microfinance products originated in the last century 70’s Grameen Bank in Bangladesh, the government initially as a specific way of helping the poor to poor families to provide effective way of lending and funding, the late by gradually developed into a higher interest rates, short term and requires the third party as a guarantee loans, be issued to the repayment ability of the customers to seek higher levels of capital investment rate of return, to complete the banking business to a specific group of services and sustainable development objectives. Micro credit product development ideas in the field of financial integration after the combination of derivative products, and then quickly at the world bank to promote, many Chinese home, including China are the beginning from the development train of thought of rural Bangladesh Bank, the microfinance products and support the development of small and medium-sized enterprises in the country, to solve the practical problem of financing small and medium enterprises the. This paper uses relevant theories of risk management and the micro credit, based on the current research, using qualitative and analysis method for risk of rural commercial bank microcredit business research, through the summary of rural commercial bank micro credit risk management model facing to build diversified risk, and finally puts forward the comprehensive improvement of rural areas in China commercial bank risk management needs of micro credit from the following aspects, the micro credit business to conduct a comprehensive breakthrough and innovation, the construction of the small and medium-sized enterprise financing related credit management system, customer credit evaluation system, and improve the internal risk control system.