Analysis Of Japanese Rural Credit Risk Control

The heft of credit management in rural area is highlighted nowadays,but it was demonstrated that unsound credit decisions had been made and lessons as to how to manage credit risk effectively had been either ignored or never learned.For the financial institutions,being able to manage this risk is a key requirement for any lending decision.This paper focus on how the rural credit risk is managed in Japan,its credit management mechanism and evaluation and assessment of that.It largely adopts a range of theories and methods about credit management to support the ultimate decision.Part 1 sets out the key elements that cover the credit management.It introduces the theories of credit management that are expanded upon in later parts.Part 2 explores the present credit environment in rural Japan,and the cause and necessary of credit management with game theory.Then followed by Part 3 that examines how the credit risk is managed in rural Japan and analyses the special factors in Japan that reduce and lower the credit risk.Part 4 looks at the performance and quality of credit management in rural Japan.Part 5 covers the how-to-do upon credit management for rural China,where big credit risk is on the way posing special challenges.