A Study On The Risk Evaluation Index System Of Village Banks

In the rapid development of China's economy,the financial market plays an important role.With the increasing demand for financial services,the rural financial market has been developed.In order to promote the sound development of the rural economy,the CBRC issued relevant policies in 2006 to encourage the construction of new rural financial institutions.The emergence of village and town banks provides an effective supply of financial services in rural areas.But at the same time,the rapid development of the village banks is accompanied by a series of problems,making the village banks exposed in the high risk management environment.In order to promote the steady development of village and town banks,it is necessary to strengthen the risk management and study the risk assessment.Since the end of 2006,the CBRC has issued relevant policies and put forward a pilot project in rural areas such as Hubei.By the end of June 2016,there were 1412 rural banks in China,1371 of which were open.The total assets of the village and town banks reached 10810 billion yuan,and increased by 79 billion 500 million yuan at the end of 2015.There are 65% counties has setted up village and town banks.However,there are still some poverty-stricken areas that cannot set up village banks well.Using the analytic hierarchy process,to analyze the relative importance of each risk index,sort of index can reflect the level of risk,constructing the index system for risk assessment of rural banks.This paper includes five chapters: the first chapter describes the background and significance of this topic and the innovation and deficiency of the standard.The second chapter is the general situation of the development of village and town bank.The third chapter is the risk situation of village and town bank.The fourth chapter is the present situation of the risk assessment of village and town bank.The fifth chapter is the construction of the risk evaluation index system of village and town banks.Among them,the ratio of flow,financial support,risk management,non-performing loans and the dependence on core liabilities are in the top 5.The sixth chapter is the application of the risk evaluation index system.Finally,the application of the index system is summarized.