Research On Personal Credit Risk Management Process Of Gaizhou Rural Credit Cooperatives

Rural credit cooperatives are an important member of banking financial institutions in China. These institutions have made important contributions to the development of China's rural economy. However, only the personal credit loan is the profitable business of rural credit cooperatives in China. Also, most of these rural credit cooperatives are located in rural areas with weak economic base, and the degree of specialization and risk awareness of employees is generally low. With the rapid development of personal credit business in China's rural credit cooperatives, a lot of risk has been accumulated in the personal credit loan in recent years. In addition, compared with the risk control system in China's commercial banks, there is not a complete one in China's rural credit cooperatives for the personal credit business. In rural credit cooperatives, the experience of credit personnel is key to judge the credit risk, which further intensified the cumulative risk of personal credit issues. Therefore, one of important problems for these rural credit cooperatives is to puts forward improvement measures of credit risk management in order to improve the ability of credit risk management and control in personal credit business, based on the current situation of China's rural credit cooperatives.This paper chooses Gaizhou rural credit cooperatives as research object, analyzes the problems and causes existed in the risk management process for the personal credit business, and proposes improvement and safeguard measures respectively from risk management, risk identification, risk analysis and control. Specifically, this paper outlines researches on credit risk management of commercial banks, and summarizes the relevant research on the personal credit risk of rural credit cooperatives. Then, this paper tries to find risks in personal credit business and the process of risk management in Gaizhou rural credit cooperatives, and analyzes problems and reasons embedded in the risk management process. Furthermore, improvement plans and measures are designed from risk identification, risk analysis and risk control. Finally, the safeguards related to those improvements are advised in this paper, including the reconstruction of management frameworks, human resource management and the establishment of risk culture, in order to ensure the implementation effect of those improved program.This paper uses the index system and risk management process in commercial banks for reference, gives the improvement of risk management process and the corresponding safeguards to resolve the actual management problems existed in the personal credit business of Gaizhou rural credit cooperative. These measures will help Gaizhou rural credit cooperative improve risk management capacity of personal credit business, which ensure the stability of these institutions and is used for reference to manage credit risk in local financial institutions.