Research On The Personal Credit Risk Management Of The M Branch Of The Rural Commercial Bank Of Gansu Province

After the party's the third Plenary Session of the 18 th CPC Central Committee,the Pratt and whiten finance has gradually risen to the national strategy,and its aim is to allow all market subjects to enjoy the rain and rain of financial services,especially the majority of low-income groups.Gansu province is located in the northwest,the natural environment is relatively bad and the economic development is backward.It is one of the most urgent provinces to develop the Inclusive Finance.The low income group mainly concentrates in the county,which determines the focus of the Pratt and whiten finance in Gansu Province in the county.However,the credit risk is the biggest risk for commercial banks because of the weak credit basis and credit consciousness of the long tail vulnerable groups.The credit risk is the biggest risk for commercial banks.The poor management of credit risk will eventually affect the sustainable financial development of commercial banks,and it is difficult to realize the original intention of the Inclusive Finance.The promotion of Inclusive Finance will help to realize the rapid economic development of Gansu province.However,as the main force of the county Inclusive Finance in Gansu Province,the rural commercial banks have been hindered from all kinds of internal and external reasons,and the credit risk is more prominent,which has influenced the deepening of Inclusive Finance.Economic development calls for the management ofinclusive financial credit risk.In this case,a county branch of one of the58 poverty-stricken counties in Gansu province is selected as the research object of the personal credit risk management of commercial banks,with a certain typical and representative character.From the theoretical level,this paper analyzes the current situation and existing problems in the system and methods of personal credit risk management of M branch of rural commercial banks in Gansu province.The existing problems are mainly shown in the following five aspects:(1)the method of credit risk measurement is backward and the score subjectivity is large;(2)inadequate pre loan investigation and weak post loan management;(3)lack of credit risk management personnel,lack of financial product design;(4)undertake national policy loan,loan risk is more concentrated;(5)generally speaking,the credit consciousness and credit foundation of Pratt & Whitney group are not high.Then the Logistic regression model is used to make an empirical analysis on the factors affecting the personal credit risk of the M branch of the Rural Commercial Bank of Gansu province.Finally,the loan interest rate,the loan term,the repayment mode,the family annual income and the interest discount are 5 significant effects on the personal credit risk of the M branch,in which the loan interest rate and the loan rate are also given.The mode of payment is positively related to the risk of individual default,while the loan term,interest rate and family income are related topersonal credit risk.According to the influence factors,the problems of personal credit risk management in M branch are summarized.Then,based on the results of theoretical analysis and empirical analysis,the countermeasures and suggestions for personal credit risk management of M branch are put forward.