Research On Credit Risk Assessment Of Farmer Microfinance In A Rural Commercial Bank

With the development of economy,farmers micro-credit flourishes in China because of the implement the "three rural" policy by government.The emergence of farmers' micro-credit business has played a very important role in which farmers meet their needs to develop agriculture for the construction of new rural development.However,because microfinance is facing farmers,there are many problems to be solved due to the special nature.In the current financial institutions,credit risk management level is still lagging behind and lack of domestic experience and innovation and the reality of the situation,which hinder the development of micro-credit business healthy.The small loans of farmers are of great significance to promote the development of agriculture,rural areas and farmers.Firstly,we collected 180 farmers small loans related data in Changsha.The indicators of the logistic regression model include age,education level,family number,labor force,cultivated land area,living condition value,loan investment classification,the value of household appliances and the total annual income of the nine indicators.Then,with the SPSS Logistic analysis,we can concluded the main factors affecting the personal credit risk is the number of borrowers for the family,education,the number of labor.The affectings can be removed from the equation indicators is the age,the value of living conditions,industry classification,arable land,home unit value and total revenue.Finally,the author propose the specific problems of XX agricultural firms and countermeasures.The main problem is that the unsound credit network,imperfect financial knowledge,weak farmers own credit awareness and social and legal reasons.In view of this problem,the countermeasures include elaborating the internal management mechanism,strengthening the risk management internal control mechanism,optimizing the farmer credit evaluation system,paying attention to personnel training and further study,improving the loan interest rate pricing mechanism and external control mechanism.