Rural Commercial Bank Credit Risk Management Research In China

Since the opening of financial market of 2006,the majority of rural credit cooperatives have been restructured into the rural commercial bank,which become the main institute of rural finance and have substantial increase in quantity.Rural commercial banks tend to “base on SMES and serve the local economy” as its business strategy,have played an important role in taking on the local economy,supporting SMES and stabilizing the regional economy,promoting the harmonious development of society.But compare with other commercial bank,the rural banks have some special characteristics for the lower economic environment and simple customer group.They are facing relatively higher credit risk and higher rate of non-performing loans.How to study on the management of the rural commercial bank’s credit risk becomes the most important problem needs to solve.Scholars in our nation have ignored its study on rural commercial banks credit for a long time and instead have put emphasis on commercial banks research,especially discussion for its cause,warning,recognition and disposition of credit risk,which account for large amount of the total bank’s asset.Raising the level of credit risk management of the rural commercial banks is a systematic process and need to continue to improve.We need to do business on the two aspects.On the one hand,we need to combine the the principle of commercial bank and rural commercial bank.On the other hand,we need to do some research on particularity of rural commercial bank.By studying the problems of the rural commercial banks in credit management,and find improvement measures,which have a great significant role in improving the quality of assets and promoting the rural finance and local economy.This article will examine the perspective on the rural commercial banks in credit risk management and take to anji rural commercial as an example.Firstly,this article analyze the background,meaning,literature review and theories of credit management.Second,by the comparison and analysis of rural commercial bank credit management and in perspective of anji rural commercial bank present reality,including increasing non-performing loans,the categories of credit,high concentration of credit risk,construction of credit and so on.Then,this article analyses the main problems of credit management of anji rural commercial bank,including management after loan is formalistic,non-standard credit construction,insufficient credit investigation and so on.Finally,with the above argument as the basis,put forward the effective risk control measures and suggestions to enhance rural commercial bank credit.