Study On Risk-sharing Mechanism In Agricultural Credit Products

Since 2004,China's central “No.1” documents have focused on the development of “agriculture,countryside and farmers” and have paid attention to the problems of rural financial reform and rural harvesting.The innovation of credit products for agricultural enterprises plays an important role in the development of rural finance,which in turn affects China's agricultural construction.In the process of credit product innovation for agricultural enterprises,whether credit risk can be dispersed and reduced is a key point in determining whether innovation is feasible.Therefore,the main issue studied in this paper is how to use the innovation of risk-sharing mechanism to reduce the credit risk of agricultural enterprises.This paper takes the J-city agricultural "political,banking,and insurance" cooperative loan as an example,and interviews the persons in charge of the three parties involved in the cooperation of the product: commercial bank A,Agriculture Bureau of J-city,and insurance company B.Based on existing research results,it sums up that the risks faced by the credit business of agricultural enterprises in China mainly include agricultural producers' operating risks,financial risks,natural risks,reputation risks and guarantee risks.With interview data and related product program documents,it elaborated the design of the product,and explored that its risk-sharing mechanism is mainly achieved by sharing the compensation responsibilities and joint control risks.Combined with the summarization of the credit risk above,it found that commercial bank A used this product to guide the standardized management and strengthen information communication to reduce the credit risk of agricultural enterprises.This paper has supplemented and enriched the relevant theories on the application of credit risk of agricultural enterprises and innovation in risk-sharing mechanism,to providing ideas and experience for credit product innovation in the future.