Study On Legal Prevention Mechanism Of Credit Risk Of Rural Banks In China

Economic development in rural areas is an important part of China’s economy,and its rapid development needs a lot of financial support.In order to prosper the rural financial market,promote the development of rural economy,promote the coordinated development of urban and rural finance and urban and rural economy,and provide financial services for the rural main body,China has initiated the establishment of village and town banks in various regions with the cooperative investment of banking industry and private capital with certain strength.The establishment of rural banks is a major breakthrough in China’s rural financial policy,which greatly alleviates the problem of insufficient financial supply in rural areas.From the perspective of practice,as the backbone of rural financial market in China,rural banks play an irreplaceable role in supporting agricultural production,serving farmers and developing rural economy.However,there is no doubt that some problems have been exposed in the operation of rural banks.The most prominent one is the non-performing loan rate higher than the average level of commercial banks,which leads to higher credit risk.At the same time,the characteristics of the combination of profit-making and supporting agriculture make the credit risk of rural banks have the characteristics of special causes and difficult to prevent and control.To prevent and control the credit risk,to establish and perfect the practical legal prevention mechanism of the credit risk of the rural banks is the urgent task of standardizing the rural financial market and legalizing the rural banks.Firstly,this paper takes the definition of credit risk of rural banks as the logical starting point,based on combing the latest academic research results,adopts literature research,comparative analysis,historical demonstration,case analysis and other methods to explain the characteristics of credit risk of rural banks,reveals the causes of credit risk of rural banks,and clarifies the establishment of normative documents for the prevention and control of credit risk of rural banks The current situation of law and the problems existing in the prevention of credit risk of rural banks demonstrate the theoretical value and practical significance of constructing legal mechanism to regulate credit risk of rural banks.Furthermore,the paper analyzes the problems in the legal prevention of credit risk in rural banks,such as the lack of legislation on theprevention of credit risk in rural banks,the lack of sound internal credit risk prevention mechanism in rural banks,and the need to improve the legal mechanism of credit supervision.In view of the existing problems,it is necessary for us to speed up the pace of rural credit investigation laws and regulations and agricultural insurance legislation by improving the legal rank of rural banks;establish the credit evaluation system of customers in the bank,improve the professional quality of internal personnel and improve the credit management process;standardize the market access mechanism of rural banks,improve the internal governance structure of banks,improve the market exit mechanism and government supervision Effective measures should be taken to improve the legal prevention mechanism of credit risk of rural banks in China.In order to provide suggestions for the sustainable development of rural banks and the improvement of credit risk legal prevention mechanism.