Agriculture-related Enterprises Loan Risk Management And Innovation

The development of modern economic society can not be separated from the financial support,so is the development of agriculture.However,the direct financing ability of China's agricultural industry is relatively weak,lending to commercial banks has become a major source of funding for the development of the agricultural industry.With the deepening of China's rural reform,agriculture-related loans play an irreplaceable role to improve the level of agricultural infrastructure construction,promote scientific and technological progress and farmers' income increasing.The country gives agriculture a lot of credit funds support,And the resulting credit risk has become the risks Commercial banks must face.Under the current situation,both commercial banks and policy banks should strengthen the credit risk management,in order to ensure the safety of its credit assets,and promote the healthy development of the money market.Loan risk management is the center of risk management of China's commercial banks.How to effectively reduce and prevent loan risks,to ensure the safety of loan funds is a long-term and arduous task that our commercial banks must complete.In recent years,through a large number of theoretical and practical research,credit asset quality of China's commercial bank has been significantly improved.However,the agriculture industry is weak,most agriculture-related enterprises have problems.Such as high assets and liabilities rate,less collateral assets,poor operating stability,lack of power development,results in the loan risk of Agricultural loans is generally higher than other industries.Therefore,the problem of credit risk management of agriculture related enterprises has more research value.In the current financial environment,strengthening the management of loan risk of agriculture-related enterprises became a key factor of commercial banks to cope with the fierce competition in the same industry and enhance the competitiveness and profitability.Based on the actual work experience,from the perspective of commercial banks,agriculture-related enterprises as the research object,this paper studies the loan risk management and its innovation.This paper is divided into five parts.The first part is the introduction part.The second is to review the agricultural enterprise loan risk management theories,Including the definition of the concept of agriculture-related enterprises and the understanding of agricultural loan risks.The third part is the agricultural enterprise risk management status analysis.The fourth part is to explore agriculture-related enterprises loan risks management.Finally puts forward the innovation of risk management in order to effectively control the agriculture-related enterprises loan risk.