Research On Risk Management Of Farmers' Loans In Hefeng County Rural Credit Cooperatives

Rural credit cooperatives is composed of farmers to buy into,in membership and democratic management,mainly for the stake in membership service cooperative financial organization,is approved by the people's bank of China in accordance with the law and set up legal financial institutions,rural credit cooperatives is an important part of China's financial system,its main task is to raise rural free funds,for agriculture,farmers and rural economic development to provide financial services.Since reform and opening up,the rural credit cooperatives in the service "three agriculture",support the development of county economy at the same time,with the deepening reform as an opportunity to grasp the new trend of social and economic development,realize the leap-forward development of the business,has become the main force of rural finance and contact the farmer's financial ties.The northwestern part of China is an underdeveloped area,and the traditional agriculture is more important.With the deepening of agricultural reform in recent years,Hefeng County has accelerated the development of agriculture,farmers and rural economy,which cannot be separated from the financial support of financial institutions.And the speed of rural economic development,this is inseparable from the financial support of financial institutions.Hefeng County Rural Credit Cooperatives is committed to serving the "three rural"business,handling credit business for farmers and supporting the economic development of the county.With the rapid development of the economy,the risks of the rural household loans in the process of issuance and recovery cannot be ignored.On the one hand,because traditional agriculture has the characteristics of large investment,long cycle,low income and strong seasonality,rural household loans are vulnerable to the natural environment,interest rates and markets,which makes the risk of farmers'loans appear.On the other hand,rural credit cooperatives continue to increase their support for agriculture,further expand the scope of supporting agriculture,and expand the fields of farmers and agricultural production services.However,they are affected by factors such as the inability to effectively implement internal control and weak credit risk management.The risk is increasing.Business development and risk prevention and control are the two main lines of the operation of the association.The quality of rural household loans continues to decline,and the proportion of non-performing loans continues to rise.This not only restricts the development of the credit business of rural credit cooperatives,but also affects the rapid development of the rural economy in the county.Therefore,only by effectively controlling the risk of rural household loans can the sustainable development of the Hefeng County Rural Credit Cooperative be guaranteed and the role of supporting "agriculture,rural areas and farmers" can be better played.Based on the research of Hefeng County Rural Credit Cooperative,this paper uses the theory of bank credit risk management and comprehensive risk management theory based on the basic situation of farmer loan business,and studies the credit risk of farmers based on the research of farmer loan risk management of domestic and foreign banks.Manage this topic for research.Firstly,it introduces the business types and management status of rural households' loans in He Feng County Rural Credit Cooperatives,and analyzes the current situation of farmer's loan management from five aspects:internal environment,target setting,control activities,information communication,supervision and control,and analyzes the existing existence in loan management.Class risks and issues.Secondly,from the farmer loan processing process,the paper summarizes the main seven major types of risks and risks in the loan,and uses the questionnaire to identify the degree of impact of the household loan and the probability of occurrence,and evaluate the main risks and propose the existence of the existing risks.The method of risk response and control.Finally,it is to establish the safeguard measures for the operation of the farmer's loan risk management system,and to prevent and resolve the farmer's loan risk from the sound internal control safeguard measures and the improvement of the mechanism operation guarantee measures.It is hoped that through this research,we can continuously strengthen the risk management of farmers' loans in Hefeng County Rural Credit Cooperatives,improve the risk prevention and control capabilities,resolve the risks of credit,and effectively solve the problem of high proportion of non-performing loans of farmers,thereby enhancing farmers' income-increasing capacity and Credit unions support the strength of agriculture and create a good situation for farmers and credit unions to achieve a win-win situation.