Research On Risk Assessment Of Micro-credit Loans In TS Rural Commercial Bank

As the main institutions of financial supply in rural areas of China,rural commercial banks provide financial support for the development of “agriculture,rural and farmers”.However,with the rapid increase in rural credit demand,the credit risk of rural commercial is constantly exposed,threatening the healthy development of the rural financial system.Establishing a scientific and effective assessment system for credit risk has become a key step for the rural commercial bank to improve its risk management level,maintaining the healthy development of the rural commercial bank.The micro-credit loan is the main business of the rural commercial bank,the risk prevention capability of the rural commercial bank to the risk of micro-credit loans will influence the benign development.Therefore,the quantitative assessment of the risk of micro-credit loans is of great significance to the stable operation of rural commercial banks.At present,TS Rural Commercial Bank conduct a qualitative assessment of micro-credit loan risk by account manager.Therefore,the evaluation of risk is a strong subjectively,and the evaluation system also has problems.It is imminent to promote the risk assessment of TS Rural Commercial Bank from qualitative to quantitative and build an efficient risk assessment system.This article selects TS Rural Commercial Bank as the research object,and conducts a comprehensive study on the risk assessment of micro-credit loans.Firstly,this article reviews the domestic and foreign research status and related theoretical basis of micro-credit loans,trying to find ways and methods of TS Rural Commercial Bank micro-credit loan evaluation.Secondly,this article collects the information of TS Rural Commercial Bank and the current situation of its micro-credit business,and conducts qualitative analysis on the loan objects and introduces the current risk assessment system of the bank systematically.Thirdly,this article identifies the risk of micro-credit loans of TS Rural Commercial Bank.After that this article analyzes the risk causes from three aspects:loan object,TS Rural Commercial Bank and external environment.In addition,the research on the risk assessment system of the bank also founds that the evaluation method is too simple,the operation of the bank is not standardized,and the information setting is unreasonable.Based on these research results,the causes of problems in the evaluation system are also discussed in depth.Then from the four aspects of object quality,debt repayment level,capital situation and economic environment,this article selects 14 indicators to establish an index system,and uses the binary logistic method to the micro credit loans business in order to conducting an effective assessment.The accuracy of the evaluation model established in this article to the overall customer default rate is 95.8%.Finally,this article puts forward some suggestions to improve the risk assessment level of micro-credit of TS Rural Commercial Bank,including managing customer information,improving the risk assessment methods,optimizing risk assessment processes and systems and improving professional skills and moral standards of personnel.