A Case Study On Risk Management Reform Of Farmers' Micro-credit In X Rural Commercial Bank

In order to revitalize the countryside,the question of where the money comes from must be solved.As a special financial instrument to serve the rural areas,farmers' micro-credit can effectively improve the availability of farmers' loans.However,due to the particularity of its loan object and mode,farmers' micro-credit is facing great risks compared with other credit businesses.In this context,X Rural Commercial Bank through a number of measures to reform the risk management of farmers' micro-credit,this paper selected this reform as a case,based on the C township of the city's research data,around the elements of risk management and the causes of control of the non-performing loan ratio to carry out a comparative analysis.The theoretical analysis of the risk management reform of farmers' micro-credit shows that the risk mainly comes from the restriction of the rural economic and social environment,the information asymmetry between the borrower and the lender,lack of credit risk management in rural financial institutions.The corresponding external factors of risk management improvement include strengthening the construction of credit system.Internal factors include improved credit rating technology,optimization of risk organization structure and risk management methods.An Analysis on the causes of the reduction of farmer's micro-credit non-performing loan ratio,at the macro-level,benefits from the improvement of credit environment.At the banking level,on the one hand,according to the comprehensive risk management theory,innovative risk management methods and comprehensive risk management organizational structure can effectively improve the level of risk management;on the other hand,according to the financial exclusion theory,in the face of the dual objectives of business objectives and social responsibility,rural commercial banks will appear mission drift phenomenon.This paper makes a comparative analysis of the management elements,risk cases and management performance of X Rural Commercial Bank's micro-credit risk management reform before and after the reform.It is found that after X Rural Commercial Bank launched the micro-credit risk management reform in 2016,the non-performing loan ratio in C township has decreased significantly,but at the same time,there was a phenomenon that the structure of loan farmers was deviated.The genetic analysis suggests that the first is the development of rural credit system makes the external credit environment improve;second,the improvement of credit ratingmanagement technology enables effectively control of the factors of farmers' credit default;the third is the preliminary establishment of comprehensive risk control system for banks while migration of agricultural support targets under high risk control,commercializing development and advances in risk management technology have effectively controlled the non-performing loan ratio,there has also been a shift in the target of the loan to the wealthier class at the same time.This,to a certain extent,is contrary to the original intention of poverty alleviation of farmers' micro-credit.Finally,based on the case study,some case inspirations have been obtained.The sustainable development of farmers' micro-credit depends on endeavor from several aspects.At the macro level,we should strengthen the risk resilience of agricultural social,promote agricultural insurance to achieve risk transfer,continue to improve the agricultural social credit system,increase the incentive of supporting agriculture credit policy.At the bank level,we should improve the level of credit risk management and correctly handle the relationship between commercial benefits and agriculture support objectives.