Research On Risk Management Of Small Farmers’ Loans Of Rural Commercial Bank Of LY City

The lack of rural finance and agricultural financing has become a problem to China’s rural development.With the advancement of new rural construction,the demand of small-scale farmers ’loans is diversified and multi-level,and the risk of small-scale farmers’ loans is becoming more and more prominent.LY Agricultural Bank of China,as the main force of rural finance in the region,the problem of small farmers ’loan risk is gradually exposed,and it is not only the need of LY ABC to develop itself in the financial reform,but also to study the risk of small farmers’ loan and carry out effective management.To promote the rural financial environment is the need for optimization.Based on the theory of micro-loan risk management of small-scale farmers,this paper focuses on the risk management and risk factors of small farmers’ loans in LY Agricultural Bank of China,taking case analysis and empirical analysis of the theory with practice,careful investigation and analysis,the LY Agricultural Bank of small farmers loan risk management has a strong guiding significance.This paper first defines the concept and characteristics of small farmers ’loans and risks,classifies the risk of small-scale farmers’ loans,and expounds the specific processes and relevant theories of risk management.Then,the status of loans to small farmers in LY Agricultural Bank,The risk and risk management practices are discussed systematically.Facing risk for credit risk,operational risk,natural risk,and market risk.This paper points out the problems faced by LY farmers ’small-scale farmers’ loan risk management from the macroscopic,agricultural and commercial households.This paper analyzes the influencing factors of LY Agricultural Bank’s small farmers’ loan risk by means of regression analysis and empirical analysis.The eight factors that affect the effect are: family situation,use,education level,loan amount,repayment period,household liability,Annual net income,external environment.Finally,based on the empirical research conclusion,drawing lessons from foreign experience,for the LY Agricultural Bank of China put forward the effective management of small farmers loan risk countermeasures and recommendations: from the macro level,to strengthen the rural society Credit system construction,for policy support,and actively respond to external factors,to develop rural insurance industry,improve the regulatory system,improve the ability to use the law;from the Agricultural Bank level,combing business processes,improve the internal control system;Awareness,cultivate the culture of compliance,increase product and service innovation,improve the guarantee system;farmer level,strengthen the technical training of farmers to enhance farmers ’ability to resist risks,and effectively play the role of supervision and control of farmers’ associations.