Research On Financial Moral Hazard Of Gansu Province Rural Credit Union

Finance is the core of the modern economy.Since the reform and opening up,the vigorous development of China's financial industry has injected a strong impetus to economic growth.However,the financial itself is also fragile: from the Asian financial crisis in 1997 to the US subprime mortgage crisis in 2007,and then to the European debt crisis in recent years,the accumulation of risk concentrated in the financial sector will bring significant harm to the national economy.Researching the causes of crises and exploring the causes of crises,all of them ignore the neglect of financial moral hazard prevention.At present,China has entered a new normal stage of economic growth,which is in a new stage of development of "shift period of growth rate","structural adjustment of pain period" and "digestion of pre-policy period".During this period,along with increasing downward pressure of real economy and the deepening of financialization,the problem of financial moral hazard will be further highlighted.Therefore,the prevention and dissolution of financial moral hazard will be the key to promote the steady and rapid economic development of our country.GPRCU ranked first for many years in the province's financial institutions in the scale of assets,total deposits and loans,agriculture-related loans,and became the main force to support economic development in Gansu.However,the GPRCU expose the problems of the risk management system,the staff of professional ethics and others have not been solved.In the today of financial reform deepened,the spread of these problems will affect the GPRCU's business and even the future survival of enterprises.In base of analyzing the financial moral hazard problems of rural credit cooperatives in Gansu Province,this paper attempts to analyze the current situation and the causes of financial moral hazards from internal and external perspectives.Among the reasons,some of the moral factors and business management factors,but also the institutional environment and other external factors.By analyzing the causes,this paper has formulated the financial moral hazard management measures of rural credit cooperatives in Gansu Province,and has carried on the summary and prospect of the article.