Research On Optimization Of Credit Risk Control System Of Lu’an SP Village Bank

Commercial banks are a special type of business risk,and risk control runs through every stage of their development.Since December 2006,the former China Banking Regulatory Commission has proposed the pilot work of village banks,the village banks have developed rapidly in the past 10 years.Due to the particularity of its own positioning and business scope,village banks have weaknesses in daily management such as high operating costs and limited service population,and they have also faced increasingly fierce competition threats from other local financial institutions in recent years.The credit risk control system is not perfect is the fundamental reason why the credit risk of village banks is still high.Since the advent of commercial banks,most experts and scholars have targeted research on large state-owned commercial banks and joint-stock commercial banks,but they ignored the village banks which was developed rapidly in recent years.This paper selects a representative village bank which was established early and the scale of asset business development is relatively fast in Lu’an as the research object,combined with its existing credit risk control system,analyse the main problems and impacts on the system,and the analysis of factors has certain theoretical significance for the research of credit risk control system of village banks.At the same time,it will help the village bank to improve the existing credit risk control system,solve some of the difficulties in daily credit risk control,it also has a strong practical theoretical significance for improving its overall management level and credit risk control ability,ensuring stable and sustainable operation.The Lu’an SP Village Bank is a new type of rural small and medium-sized financial institution which was jointly initiated by domestic banking financial institutions,natural persons and corporate legal persons.Due to the short commercialization time of the bank,the risk control concept has not penetrated into every operation link in the daily activities of employees,and the credit risk control system needs to be further optimized.Based on the research and analysis of this paper,It is proposed to improve the existing credit risk control organization system,establish relevant systems for credit risk control,strengthen the role of risk management committees,improve the credit risk control mechanism,and Establish a comprehensive and reliable credit risk information system and intuitive scientific credit risk warning and disposal mechanism,optimize credit risk control processes,etc.It provides a reference for optimizing the credit risk control system of Lu’an SP Village Bank.