Research On Credit Risk Management Of Agricultural Enterprises In A Rural Commercial Banks

Deepening the reform of the socialist market economic system is one of the key work items of China at this stage,In the economic development,the status of small and micro enterprises has gradually become prominent.While promoting deepening reforms,it has also greatly promoted economic growth and market prosperity.Since most of the agriculture-related enterprises are small and micro enterprises,the financing needs of agriculture-related enterprises have the characteristics of “short,small,frequent,and urgent”,which makes it difficult to finance enterprises in actual operations.Although commercial banks have increased their investment in agriculture-related enterprises under the central government’s call for external policies to support agricultural development,However,in view of the particularity of agricultural development and the fact that agribusinesses generally exhibit high asset-liability ratios,less effective assets that can be mortgaged,and less sustainable development,the non-performing loan ratio of agribusiness banks is high,and the potential risks are more prominent.The practical problems of risk management at the operational level of agriculture-related loans still constrain its business development.The financing difficulties of agriculture-related enterprises have received the attention and attention of the government and commercial banks.The State Council and relevant departments have introduced financial,fiscal and taxation policies and measures to support the development of small and micro enterprises,and demanded increased financial support for agriculture-related enterprises.In this context,most of China’s banks have also begun to get involved in the agricultural financial services sector.As a new force for financial development in rural areas,rural commercial banks have become a necessity in the development of new forms of financial industry,and the deep integration of Internet finance and rural industries.How to effectively prevent the credit risk of agricultural enterprises has become a problem that the industry needs to face.This article is guided by risk management theory.Combining the characteristics of the credit of agriculture-related enterprises,through the literature research method and the field investigation method,the status quo of agricultural credit risk management of rural commercial banks is identified.Combined with the characteristics of credits of agricultural enterprises,this paper identifies the current situation of agricultural credit risk management of rural commercial banks through literature research methods and field investigation methods,and conducts theoretical analysis and practical research according to the bank’s internal risk management process methods.And the cause of the optimization of the credit risk management system for agricultural enterprises,the improvement of the risk management system for agricultural credits by means of improved risk assessment indicators and risk management processes,and the simulation of the M Group agricultural project case to verify the improved The effectiveness of the risk management system provides practical experience for further improving the risk management system of A rural commercial banks.Based on the above theoretical analysis and case studies,This paper analyzes the problems of the risk management organization structure,the single risk assessment method,the lack of pertinence of the risk assessment system and the outdated risk control process in the risk management of agricultural credit risk in rural commercial banks.Combined with the actual operation of A rural commercial bank’s agriculture-related credit business,it puts forward specific measures to reform the internal organization,expand the evaluation method,refine and add some evaluation indicators and optimize the risk control process.According to the above research and analysis,it gives the internal credit rating system for constructing the credit of agriculture-related enterprises,strengthens the professional quality training of employees,improves the risk evaluation system,and uses the means of big data information system development to enhance risk prevention and control.,Combined with the actual risk management of agriculture-related credit risk in rural commercial banks,the first is to establish an effective risk management organization;the second is to improve the risk control business process;the third is to scientifically and rationally construct a risk assessment system;the fourth is to strengthen the assessment and encourage the cultivation of professional talents.The fifth is to establish a risk management culture;in order to effectively avoid the risk of agriculture-related credit business,further improve the service level of agriculture-related financial institutions for rural economic development,and help implement the national rural revitalization strategy.