Study On Microcredit Risk And Control Of Xinhua Rural Commercial Bank

With the continuous development of the rural economy in China,the fund demand increased gradually.And the Rural commercial bank is a financial institution,which is facing,supporting and providing credit funds for agriculture,rural areas and farmers.But rural commercial bank is also facing huge risk of microfinance,therefore,how to better to manage microfinance risk,to ensure that microfinance has always been in a benign environment,has become urgent problems of rural commercial bank.This paper selects Xinhua Rural commercial bank as the research object.This paper scientifically analyzes the risk management of microcredit,combined with the five-level classification method,in the full analysis of the cause of microfinance risk,aimed at improving Xinhua Rural commercial bank's microfinance business risk control ability.First of all,in this paper,the related literatures at home and abroad on microcredit and its risk control are reviewed.Construct the theoretical framework of this article through the theory of the rural finance,information asymmetry theory and credit rationing theory.Secondly The paper introduces the current situation of risk management of micro-credit in Xinhua Rural commercial bank and analyzes the main risks of micro-credit in Xinhua Rural commercial bank from three perspectives:the risk of the lender credit,interior management system,external environment.Accordingly,this paper demonstrates the main problems in the process of risk management,including:human resource management is not in place,the operation mechanism is not perfect,and the risk management system is not perfect.In order to solve these problems gradually,raise the level of risk management,enhance the support of risk management to the business development,this paper put forward the countermeasures to strengthen the rural micro-credit risk management,such as flexibly loan the interest rate period,optimize the credit approval system,strengthen its risk awareness,improve the post-loan management of loan funds,improve the guarantee mechanism,improve the credit quality,improve infrastructure construction and create jobs to reduce external environmental risk factors.These countermeasures have certain reference significance to improve the level of microcredit risk control.