Risk Management And Control Of Credit Business Of My Country's Town Banks

Sustained and steady growth of a country's economy is closely related to large numbers of small micro enterprise.A micro enterprise has become the trend of economic development.Micro and small enterprises financing problem has become a hot topic of scholars attention and discussion.As the backbone of China's economy pillar,Small micro enterprises healthy development has significant stability for China,s overall economy.Effectively solving the small micro enterprise financing problem relies on the innovation and development of Chinese financial theory and time.In addition,China is a developing country,urban and rural dual structure is still the biggest problem in the economic structure."SAN Nong" problem is still the key of the economic development.Compared to the developed areas,there is less financial institutions,inadequate competition,and low service satisfaction in rural area.At present,the small micro enterprise is difficult to apply for loans,which has been a particular problem that people focus on.Countries published a number of laws and regulations,which require commercial Banks to provide financial support for small micro enterprise development.Against this background,Village Banks was founded as new banking system to provide loan service to small micro enterprise.The emergence and development of the village bank facilitates the local financial institutions business innovation,system innovation,and etc.Village Banks has established the channel for the urban capital backflow to rural area,and channel to retain rural capital in rural area,which can balance the rural financial market,strengthen and improve the rural financial service,activate the rural financial market,foster the new rural finance subject,make up the commercial financial institutions "blank space",to build a diversified,broad covered and sustainable rural financial system,to achieve the optimal allocation of resources.Village Banks are currently infancy,met a lot of complex problems.Due to the particularity of small micro enterprise itself,it is with high risk and default rate for village Banks to loan to them.How to decrease the default rate for village bank is the main problem to be discussed and solved in this paper.Here taking some loan business case from Jiangsu Hanjiang Mintai Village Banks as examples,find some practical problems,combined with the existing literature research.Review present situation of small micro enterprise loans,and sum up the root cause of the high risk when village bank provide loan to those companies.Also associated with some foreign rural financial institution success stories,come up countermeasures for loan risk control from credit risk,operation risk two aspects,so that promote the healthy development of village Barks and small micro enterprise business.