ZZ Rural Commercial Bank Rural Household Loan Default Risk Factors Research

Rural commercial banks are the main financial support to serve the "three rural."There is not only heavy competition within the banking industry to seek a foothold,but also to bear the hundreds of millions in capital needs of agricultural services to farmers.The main goal of rural commercial banks is serving farmers and agricultures.With the country's high degree of concern for agriculture,rural areas,and the development of Pratt&Whitney's financial policies,the development level and scope of agriculture in rural areas has been expanding as the enthusiasm of farmers has continuously improved.The rural commercial banks at the grassroots level are the most basic units of the Chinese banking industry.The management and development of the commercial banks in China are directly determined by the good and bad management of the rural commercial banks.In this context,combined with theoretical knowledge and practical experience using the literature analysis,comparison analysis,data model analysis,case analysis and other methods were used to analyze the factors of breach of contract of rural commercial bank loans to farmers.This paper is based on the comprehensive analysis of farmer loans used for the development of rural areas and agriculture.The study of the breach of contract is based on the phenomenon of loans that are easy to get but difficult to repay.This paper uses the Logit model to analyze the default risk of the farmer's loan in the rural commercial banks of the ZZ area through the methods of literature reading,comparative analysis,econometric estimation,cases study,and so on.In this article,the author analyzes relevant data for the causes of the default of farmers.The results of the analysis also include an in-depth investigation and summary of the factors that lead to the risk of default in the ZZ area,which includes aspects from both the bank side and the farmer side.The key points for the bank default rate is lack of human resources in the region,the imperfect management system,and the backwardness of management.The aspects from the farmer side that caused farmers to breach have several factors.These factors include the education of farmers,family size,annual income,and loan amount,etc.Combined with the above empirical results and regression analysis of the model the author has explored the strategies and approaches for the prevention and treatment of the default risk of rural households' loans in rural commercial banks.A case study is provided for research on the risk of banks and the direction for solving these problems is suggested.At the end of this paper,the author puts forward a rationalized proposal which is scientific,representative,and practical from the point of view of banks and the government.The paper establishes an effective evaluation system of the default,promotes the innovation and optimization of the risk management mode,and improves the overall quality of the client manager.We will improve the management of rural information systems,and further enhance the awareness of farmers on the importance of credit.