Research On Credit Risk Management Of Agricultural Loan Of Agricultural Bank Of China B Branch

The main difference between Agricultural Bank of China and general state-owned commercial banks or other commercial banks is that their financial support for the development of agricultural economy and society is the key point and foothold of the development of banking business.Agricultural related loan business and other services are the core of financial services of Agricultural Bank.In recent years,the Agricultural Bank of China has actively promoted agricultural-related financial support in various regions,providing a large number of agricultural-related loans and increasingly widespread distribution.Agricultural bank loans to agricultural enterprises,farmers and farmers are increasing day by day.The reasons for applying for loans and the practical uses of loans are becoming more and more diversified,which also makes the management of agricultural loans more difficult.Credit risk is one of the core contents of loan risk management.Compared with the credit basis of general enterprise or individual loans,the credit information of agricultural loans is relatively scarce,and it is difficult to accurately conduct the credit audit and evaluation of agricultural loans.Moreover,agricultural loans are closely related to the agricultural production and operation environment,and there are significant regional and seasonal differences.If the credit risk management of agricultural loans only adopts the general credit risk management model,it will be difficult to highlight its characteristics,and the identification,evaluation and control of credit risk will be difficult to achieve the ideal situation.However,in the development of agricultural loans,some branches such as Agricultural Bank B have increased or decreased the scale of agricultural loans and diversified the structure,thus contributing more or less to agricultural development.However,there are a series of problems,such as risk growth and non-performing loan growth,which are mostly due to the emphasis of branch on expanding credit,but fail to follow up credit risk management.Then,a series of problems such as the increase of credit risk of agricultural loans and the rise of non-performing loan rate can not be avoided.In this case,this paper focuses on the case of Agricultural Bank B Branch,thinking about the relevant issues of credit risk management of agricultural loans by grassroots banks.The research mainly uses the methods of literature,examples,investigation and comparative analysis to explore the reality of the development of agriculturalloans of ABC Branch B,focusing on the analysis of the performance and causes of its credit risk management deficiencies,and to explore solutions.The research content mainly includes six parts:Firstly,it introduces the research background,ideas,methods and related literature,and lays the research direction of this paper.To clarify the particularity and importance of credit risk management of agricultural-related loans,and draw attention to the topic of risk management of agricultural-related loans of Agricultural Bank Branch;secondly,to elaborate the relevant theory of credit risk management of commercial banks,understand the connotation of credit risk,clarify the risk identification,evaluation and control system involved in credit risk management,and then preliminarily understand the risk management of agricultural-related loans.The main points are to lay the theoretical foundation of this paper.Thirdly,to sort out the basic situation of Agricultural Loan of Agricultural Bank B Branch,to resolve the rapid development of the business of Agricultural Loan of Agricultural Bank,with a diversified structure,has a special role in promoting agricultural economic growth.However,further combined with the reality of the increase of non-performing loan rate,this paper puts forward the conclusion of its credit risk growth,and then puts forward that the credit risk management of bank's agricultural loans is not in place.Fourthly,combining with the situation of Agricultural Bank B Branch,this paper explores the non-performing loan problem of credit risk of agricultural loans,the poor achievement of risk management objectives and other related aspects to explore whether the credit risk management of agricultural loans is not in place.Fifthly,the reasons for insufficient credit risk management of agricultural loans of ABC Branch B are discussed,including insufficient understanding and preparation within the organization of credit risk management,insufficient management at different stages of identification,evaluation and control of core credit risk of agricultural loans,and insufficient implementation of credit management of agricultural loans,which hinder the optimization of credit risk management of agricultural loans.Fifthly,the paper designs relevant countermeasures to strengthen the credit risk management of agricultural loans of Agricultural Bank B Branch,hoping to reduce its credit risk by adjusting the business structure of agricultural loans,strengthening the credit audit and review of the applicants,strengthening the supervision of loan uses and follow-up management,and promptly starting the non-performing loan processing mechanism;sixth,it summarizes the full text.Through the full text analysis,agricultural loan is the core loan business of Agricultural Bank of China.It is not only the focus of the development of bank loan business,but also the main measure for Agricultural Bank to actively fulfill its social responsibility and promote agricultural construction.There are complex internal and external reasons for the credit risk growth of agricultural loans.From the bank's point of view,improving credit risk identification,evaluation and control to reduce active and intentional credit default risk is an inevitable choice.From the government's point of view,there are non-active defaults in agricultural loans due to force majeure or other factors,and such credit risk control needs some help and support from the government.In a word,it is the general trend to correctly understand and deal with credit risks,promote the development of agricultural loan business in an orderly manner,and give full play to the comprehensive function of agricultural loan,which requires the joint efforts of commercial banks,relevant governments and applicants of agricultural loan.