Research On Microfinance Risk Management Of AB Rural Commercial Bank

Microfinance of rural commercial banks is an important financing way for rural economic development,which provides strong support for China to realize agricultural modernization,solve the "three rural" problems and improve the conditions of rural production and operation.However,due to the impact of natural and market risks on agricultural production industry,the low management ability of enterprises,the small income of rural residents,the small scale of rural commercial banks,and the weak ability to resist risks,agricultural and commercial banks need to undertake more micro-loan business than other commercial banks.High risks limit the further expansion of business scale and promote the development of rural economy in rural commercial banks.As a special member of commercial banks in China,rural commercial banks are restructured from rural credit cooperatives.The construction of their micro-loan risk management system can not copy the mature risk management system of other commercial banks,but also need to consider the local rural economic environment and credit environment faced by rural commercial banks.Therefore,the problems existing in the microfinance risk management system of rural commercial banks in China have seriously hindered their healthy and sound development,and more targeted risk prevention measures are needed to reduce their microfinance risk.Based on AB rural commercial banks,this paper makes a comprehensive analysis of the current situation of micro-credit risk control,and on this basis,finds out the problems and gives some suggestions combined with relevant theories.This paper consists of eight parts:The first part is an introduction,which summarizes the research background,significance,ideas and research methods of this paper,and combs the current situation of microfinance risk management at home and abroad;the second part introduces the concepts and theoretical basis related to this article,mainly including the concept of microfinance;Demand characteristics,risk characteristics and theories related to micro-credit risk,namely information asymmetry theory,credit rationing theory,transaction cost theory;the third part is the status quo of AB rural commercial banks'micro-credit risk management,from the general situation of AB rural commercial banks,AB rural commercial banks' micro-credit risk and risk management.The fourth part,based on Logit model,identifies and evaluates the micro-credit risk of AB rural commercial banks,and finds that AB rural commercial banks have larger micro-credit risk and must be effectively managed.The fifth part is the analysis of the problems and causes of the micro-credit risk management of AB rural commercial banks.According to the questionnaire survey conducted by the Ministry,it is pointed out that AB rural commercial banks have some problems in the risk management of micro-credit,such as low quality of micro-credit assets,unreasonable risk management organizational structure,poor system execution,lack of internal control mechanism,weak risk prevention consciousness,lack of credit culture and backward credit risk management methods,etc.From the internal and extermal aspects,the paper also points out that AB rural commercial banks have some prololems.The sixth part is about the experience of microfinance risk management of typical international commercial banks.According to the general situation of rural bank's joint insurance group loan in Bangladesh,Indonesia's personal microfinance and Malaysia's poverty alleviation credit model,it points out the experience of risk management.In the seventh part,according to the above problems and foreign experience,the corresponding countermeasures and suggestions are put forward.AB Agricultural and Commercial Bank should optimize the risk management organization structure,improve the internal control system,construct the whole process credit risk management mechanism,and cultivate risk management culture.Chapter 8 summarizes and prospects this paper.Through this study,we find the main problems of AB rural commercial banks' micro-credit risk management,and put forward reasonable suggestions,which enrich the relevant research results of China's micro-credit risk management,and provide reference experience for commercial banks.In practice,the risks faced by AB rural commercial banks' micro-loans are reduced to the greatest extent,which provides the necessary funds for the construction of new countryside and the reform of agricultural modernization.It is also of great significance for the healthy and healthy sustainable development of rural commercial banks in China.