Research On The Risk Assessment And Control Of Farmers' Micro-finance

There exists an obvious dualistic structure in urban and rural areas in our country. The situation of rural financial rationing is seriously, farmers have much difficulty in getting funding. If this problem is not solved, farmers can never get rid of poverty, the situation of economic backwardness will not be improved in rural areas. To construct a relatively perfect financial system need the support of financial development in rural areas. China government takes out a series of policy to support and benefit the rural economy all along. If rural finance can't grow very well, these policies would not fully play a role. Rural finance provides strong support to the progress of rural economy and the implementation of the agriculture. As an important part of China' financial system, the rural financial system is the backbone in supporting the “three rural”, it plays an irreplaceable role in safeguarding the social and economic stability in rural areas. In recent years, the concept of “Inclusive Finance” is on the agenda, financial institutions continue to increase agricultural investment.The difficulty of farmers' loan has been widely criticized in the process of the construction of rural financial system. In order to solve the problem of farmers' loans, the state actively promotes micro credit loans. It has played a great role in helping farmers to get the funds needed for the production and improving the poverty and backwardness of the rural areas. But the development of micro-finance has encountered a bottleneck. First, it is very difficult to evaluate the farmer' credit, thus lead to the credit risk in micro credit of farmers.The second, lack of farmers' credit information platform cause lending process is complex. In order to solve this problem, we must establish a set of scientific evaluation system for farmers' credit and build a farmers' credit information platform. It is a subject of both economic and practical significance. On this basis,the author analyzes how to establish the credit evaluation system, and gives thecountermeasures for controlling the credit risk.This article contains four parts. The first part contains the concept of microfinance, its current situation in China and the formation mechanism of credit risk,to lay the foundation for the next part of the assessment of credit risk. In the second part, the credit risk evaluation indexes are selected and analyze the relationship between the factors and the default rate with the data of 180 households. In the third part, the farmers' credit evaluation model is constructed,and the rationality of the index system is analyzed by using the data of 100 households. In the fourth part, the suggestions are given to solve the credit risk of micro-finance in financial institutions from three aspects of the government, the financial institutions and the insurance institutions.