Research On GXND Company's Microfinance Risk Management

As the largest developing country,China has a special national condition and a large rural population.The "three rural issues" have always been an unavoidable problem on the road of our country's development.In 2005,the term”inclusive finance" began to appear in the financial field.This concept,first proposed by the United Nations,coincides with our country's goal of building a well-to-do society in an all-round way.However,at the same time,in the process of development and growth,microfinance companies themselves face many risks.As the process of urban-rural integration continues to advance,and with the large domestic demand for funds,especially in rural areas based on the background of serving agriculture,rural areas and farmers,although there has been some development with the support of various national policies,microfinance companies still face problems.To ensure the good development of microfinance companies and improve the shortcomings.for such considerations,this paper chooses GXND Company as an example by searching for a lot of literature reviews,visiting and consulting many employees and clients of GXND to discuss the basic situation,loan balance and loan quality of GXND Company.Besides that,the credit risk of GXND Company including credit risk,capital risk and operation risk are also analyzed.This paper discusses some problems existing in microfinance risk management of GXND Company,which are mainly reflected in:inaccurate customer credit evaluation,unreasonable setting of business term,limited financing channels,low quality of staff and lack of credit risk consciousness.There are some defects in the process of microfinance risk management as well.Bascd on the research and analysis of the causes of these mentioned problems,this paper finally puts forward the specific solutions and measures to improve the microfinance risk management of GXND Company.The main solutions are as follows.Firstly,customer credit construction needs to be strengthened.Customer credit record must be established and improved.Effective measures must be taken to encourage high quality customers.Effective credit rating evaluation system needs to be established at the same time.Secondly,financing capacity needs to be f-urther improved by opening financing channels,strengthening cooperation,diversification of capital Sources.The corporate management must be standardized with the goal of village banks.Thirdly,innovative credit product development should be based on market demand by providing multi-level and multi-category credit products;developing industry-specific credit products.Fourthly,the construction of credit professional talent team needs to be built up.The employees'training and risk assessment must be carried out regularly.Finally,credit risk management process should be optimized.The scope of investigators' on-site inspection before lending should be expanded.The audit process in loan needs to be further optimized.The tracking management and personalized service after loan should be strengthened as well.This study of micro credit risk management of GXND company not only will help the microfimance business to develop better and achieve stable operation,but also to provide the reference value to the other microfinance companies in their future development path.At the sarne time,it will also help the development of the whole microfinance industry to a warmer spring.