Research On Risk Management Of Farmers' Loan Under The Background Of Inclusive Finance

Inclusive financial system is essentially a development problem,which means under the principle of equality and sustainable commerce,to provide services for groups at all levels of society that require financial services depends on cost that financial enterprises can afford through policy guidance and support.Farmers account for nearly 60%of the total population in China,who are the important service object of Inclusive financial system.As for large-scale commercial bank service,the three issues of agriculture,rural areas and farmers is a worldwide problem.There are three prominent contradictions:first,the conflict between characteristics of“scattered,low quantity and low profit”of rural area clients and large-scale bank and intensive management;second,the high cost and risk around "issues concerning agriculture,countryside and farmers" business and the pursuit of profit maximization in commercial operation;third,regional,individuation and differentiation of financial demand of "issues concerning agriculture,countryside and farmers"business and standardization of product policy service system in large banks.How to coordinate the three contradictions is the key for large commercial banks to continuously and effectively carry out the financial services of”issues concerning agriculture,countryside and farmers".From the present point of view,Agricultural Bank still has some shortcomings in the reform of the business department and the service proves for agriculture,rural areas and farmers.The risk of farmers' loans has not yet been effectively controlled and the NPL ratio of farmers is generally higher than other loans,which definitely affects the long-term and sustainable development of Agricultural Bank to serve the farmers.This paper is based on the investigation of Z Bank,under the background of developing Inclusive Finance,studies the risk management of farmers' loan in Z Bank.This paper attempts to promote inclusive finance in rural areas and provide reference for rural financial services improvement of financial institutions.The main content of this paper is divided into five parts.The first part is an introduction,which makes comprehensive statement about background,significance,methods and ideas of this study.At the same time,the domestic and foreign credit risk management related literature is reviewed.It set up the overall framework foundation of this research.The second part is the core idea,which include the main contents of inclusive finance conception and development,the concept,principle and characteristics of credit risk so as to lay a theoretical foundation for this study.The third part is the analysis of the loan situation concerning“agriculture,rural areas and farmers" of Z Bank,mainly includes the brief introduction of Z Bank and loan present situation analysis of farmers.The fourth part is the investigation of the risk management of farmers' loans in Z Bank.On the basis of in-depth interviews,I design a questionnaire to analyze its risk,identify the main risks of farmers' loans and make deep analysis.The fifth part is the credit risk management countermeasures of Z Bank,countermeasures and suggestions are put forward from the perspective of Inclusive Finance,such as,the management of risks,external environmental risks,operational risks and moral risks,etc.