Research On Risk Management Of Agricultural Bank Of Farmer's Small Loans

The large number of poor people in the rural areas and the backwardness of the rural economy,coupled with the ever-increasing disparities between urban and rural economic dualism,have plagued China as a big agricultural producer.With the continuous im provement of the financial system,China's financial environment is gradually improving,but the financial market in rural areas has not been improved or even changed.The service capacity of rural financial institutions is still poor,and most of the rural households still have widespread“financing difficulties".In 2007,in accordance with the strategic deployment of the CPC Central Committee and the State Council,the Agricultural Bank of China vigorously developed financial services oriented to the "three rural issues"(agriculture,rural areas and farmers),and launched small household loan products for rural households.As a result,farmers' demand for credit funds was resolved,and outst anding contributions were made to the adjustment of the asset structure of ABC's credit.However,it is undeniable that the troubles such as the poor credit environment of rural households and the lack of necessary collateral for farmers hidden behind the huge development,coupled with relatively few financial institutions in rural areas.make it difficult to control the risk of small-scale loans for peasant households.Gradu ally,the ABC's small-scale loan business for rural households has experienced stagnation in scale,a decline in scale,and an increase in the rate of non-performing loans.In order to strengthen the enthusiasm of the Agricultural Bank of China,in serving rura 1 areas,promote the healthy development of the Agricultural Bank of China,and ensure the sustainable development of rural household loans,on July 27,2017,at the Agricult ural Finance and Banking Promotion Conference held by the Agricultural Bank of Chin a,Internet finance was used as the“No.1 Project" which will be deployed to serve rural areas for a long period of time.At the same time,the specific tasks that Internet finance can do in the service of "three rural issues "(agriculture,rural areas and far mers)were fully deployed.The Agricultural Bank of China will make full use of new te chnologies such as the Internet and big data to innovate new ideas and new modes of ne twork financing.Through the expansion of loans to rural households in batches,the wil 1 effectively reduce the costs and diversify the risks,thereby further increasing the coverage of credit operations.With this background,the LQ City took advantage of the "No.1 Project" to rest ore the microfinance business of rural households.However,in the specific implementat ion process,due to product design flaws and loopholes on risk prevention and control,the implementation effect was not satisfactory.In order to enable the Agricultural Bank of China to continue the healthy development of microfinance business for rural hous eholds,this paper uses literature research methods,questionnaire surveys,and binary logistic regression analysis methods based on the actual situation of rural finance in LQ and the actual situation of the Agricultural Bank of China LQ sub-branch,to analyze the status of risk management of small-sum loans for rural households of the Agricultura 1 Bank of China(LQ)branch.Taking the relevant theories and concepts of small-scale 1 oans for rural households as the main theoretical basis,this paper analyzes the existing problems and specific causes of the LQ sub-branches in the management of the risk of micro-loans for farmers,and proposes corresponding solutions.The goal is to successfu lly achieve the transformation and development of small loans for rural households in LQ sub-branches,to support the growth of rural economy and the construe tion of a new socialist countryside,to make the funds of Huinong benefit more farmers,thereby realizing the "three harvest" on the income of farmers,the healthy development of agricultural banks,and social progress.