Rural Commercial Bank Non-performing Loans Risk Control Research In China

In 2000, the reform of rural credit cooperatives in Jiangsu Province started first, 29 November 2001, the nation’s first rural joint-stock commercial banks- zhangjiagang city rural commercial bank was established and began to open. Later, with the region’s economic development various provinces and regions have to reform of rural credit cooperatives, rural commercial banks, and rural commercial bank in rural financial status is also more and more important. Rural commercial bank gradually taking on the burden of developing the local economy, supporting small and medium-sized enterprises, stabilizing the regional economy, promoting the construction of harmonious society has played a very important role. By 2014 has opened 625 rural commercial banks. In the process of this more than ten years of development, rural commercial banks improve their comprehensive level, the bank management, asset quality, profitability and so on. Their various aspects have very big improvement. At the same time, rural commercial banks in rural stability, agricultural economic growth and increasing farmers’ income have made a great contribution.Commercial banks, whether they are big commercial banks, joint-stock commercial banks, city commercial banks or rural commercial banks, in essence is operation risk. Our domestic scholars mostly are the study of large commercial bank’s risk, less study of rural commercial bank. As well as other types of banks, rural commercial bank balance sheets are about the healthy development of its top priority. In rural commercial bank the loan is the most important of assets. The loan risk will affect the size of the rural commercial bank balance sheets,and it will also have a direct impact on the development of rural commercial bank.This paper mainly studies to control the rural commercial bank non-performing loans risk. First of all, the analysis of the current situation of rural commercial bank non-performing loans risk control, it is concluded that rural commercial bank non-performing loan ratio than large commercial banks, joint-stock commercial banks and city commercial banks. Second, because the rural financial deeply affected by the weakness of agriculture, leading to rural financial management risk is big, high cost, small loans, Non-standard credit guarantee. And rural commercial bank lending is affected by the particularity of rural finance, rural commercial Banks non-performing loan ratio on the high side. Again, combining with the data of the large commercial banks, joint-stock commercial banks, city commercial banks and rural commercial bank, we contrast study of the prevention measures of rural commercial bank non-performing loans risk. Contrast research mainly displays in: in this paper, we study the rural commercial bank non-performing loans risk is the rural commercial bank as a whole to study. Based on the related theory of commercial bank risk management, we select the related parameters of preventing the risks of non-performing loans of commercial bank. Through four different types of data,we analyze the preventive measures of rural commercial bank non-performing loan ratio on the high side. Finally, using the experience of agricultural bank, we prevent the risks of bad loans.We make suggestions for rural commercial Banks to guard against and dissolve the risk of bad loans.