Analysis On Risk Management Relating To Rural Credit Interest Rate

In recent years,microloans have exploded in the number of institutions,the amount of capital and the balance of loans.In the background of the continuous and deep development of China's agricultural reform,the micro-loans play a key role by using the modern financial service of the general benefits to guide the farmers to select their crops and to make the output products,including the quality and quantity,to meet the demands of the consumer and to realize the seamless joint between the place of origin and consumption.However,in order to meet the company's sustainable development,achieve financial goals and fulfill corporate social responsibility,we need to pay attention to the practical needs and constraints of different clients,and take effective measures to prevent and control interest rate risk.In this paper,we selected the research object of A company,which focuses on micro-credit of agriculture.Through the research,it is found that A company is using the same rate of interest rates on different loans.However,the planting industry is greatly affected by de season,and the loan period depends on the planting cycle.As a result,it is urgently to study to prevent and control interest rate risk.Based on the asymmetric information theory,principal-agent theory and risk-management theory,we analyze the problems of interest rate risk control: first,the organizational structure and worker management need to be optimized.Second,there is not yet established a special interest rate risk identification and evaluation mechanism.Third,the interest rate risk process control system need to be established.Fourth,it is not clear of the information communication mechanism.Fifth,there is lack of effective supervision mechanism.Sixth,it is rigid payment that leads to the rise in the overall interest rate of the society.In view of these problems,we provide a constructive solution.First,it is necessary to optimize the organizational structure and create good internal control culture.Second,the interest rate risk assessment and recognition ability need to be further improved.Third,the risk control system should be build.Fourth,the internal and external information communication ability needed to strengthen.Fifth,it should pay more attention on supervision and control.Sixth,the government should give a clear guidance on setting the loan interestand legal financing convenient for small loan companies.