The Research Of Micro-finance Risk Management Rural Financial Institutions In Changsha

Rural financial institution's micro-finance persists in the principle of serving the rural areas, agriculture and farmers, providing the fund for the low-middle-income farmers, small and medium-sized enterprises in rural areas actively, which has effectively relieved the financial contradiction between supply and demand of rural financial market in China, expanded the channels of funding sources of rural financial market, optimized the rural financial structure. However, the development of China's rural financial institution's micro-finance is also faced with all kinds of risks,especially the natural risks, market risks, credit risk sand operation risks which are hard to meet and adapt to the need of rural economic development. Managing and resolving the risks of rural financial institution's micro-finance effectively, which is not only related to the development of rural financial institution's micro-finance and steady progress of rural financial reform, it will also affect the stability of the rural credit market and the construction of China's socialist harmonious society.The thesis takes the micro-finance's risk management of rural financial institution in Changsha as the research object, through analyzing the current situation,existing problems, internal and external risks faced with and the main influencing factors for micro-finance's risk management of rural financial institution in Changsha,putting forward the suggestions on perfecting micro-finance's risk management of rural financial institution in Changsha.Through a study of the theory of financial deepening, the theory of rural finance,theory of social capital and Pratt & whitney financial theory, the thesis firstly points out that the internal risk facing the rural financial institutions in Changsha are operational risk, institutional risk and moral risk, at the same time the market risk and credit risk are its external risks. Secondly, in line with the analysis of the causes leading to the problems occurring in the risk management of rural financial institutions, the thesis finds that the management of market risk, credit risk and institutional risk are the key risks. Thirdly, the thesis puts forward some suggestions to improve the management of credit risk in rural financial institutions in Changsha from the aspects of natural hazard, market hazard, credit hazard and institutional hazard.