Research On Risk Management Of Agriculture Related Loans Of A Rural Commercial Bank

After more than a decade of reform,China’s rural finance has made some achievements,especially in recent years,the balance of agriculture-related loans has grown steadily,the growth rate is higher than all loans,and the share of agriculture-related loans in the common credit market has also grown steadily.Rural commercial bank is a new type of commercial bank in the process of rural credit cooperative reform.In recent years,they have become an important service provider in rural financial market.With the rapid development of the agricultural credit market,the number,total assets and total profits of its rural commercial banks in China have grown rapidly.According to the particularity of rural finance,the risk of agriculture-related loans is higher than that of other loans.In 2019,in particular,China’s economy is developing at a new normal medium-high speed.The slowdown is putting pressure on all aspects of the economy and society,and commercial banks are gradually increasing their questionable loans to farmers.Under the new circumstances,it is now necessary to find out whether agriculture-related loans from China’s agricultural and commercial banks will continue to grow rapidly and what their value will be.A Rural Commercial Bank is located in Shihezi City,Xinjiang Uygur Autonomous Region.A Rural Commercial Bank was restructured and established on the basis of A Rural Credit Cooperative.Since its inception,A bank of agribusiness has been sticking to the service of "agriculture,countryside and farmers" development orientation,strive to build A capital adequacy,strict internal control,safe operation,high efficiency of modern financial enterprises,give full play to its advantages,to provide better service economy,analysis of the actual situation at the same time,targeted Suggestions for improvement are put forward.Therefore,this can not only provide new inspiration for banks to fully prevent credit risks in the context of economic slowdown,but also help deepen the research on the comprehensive prevention of credit risks in Chinese commercial banks.At the same time,it also put forward some suggestions to other agricultural financial institutions to support the development of agricultural credit business.Based on the literature research,the method of combining theory and practice to A farmers conduct the thorough research to the commercial bank as an example,based on the ratio of credit theory,and the theory of risk management were analyzed,and the associated with agricultural loans by reading books,literature and statistics,such as the Internet information,understand the current situation of the agricultural credit business in A bank of agribusiness and its development trend.This paper focuses on the current situation of A Rural Commercial Bank’s agriculture-related loans and risk management,describes the development process and characteristics of A Rural Commercial Bank’s financial services,and systematically explains its most important agriculture-related loans to enterprises and farmers.The analysis shows that the main risk sources of agricultural loans are weak agricultural industry,high concentration of business,relatively backward technological innovation and other risk factors.Combined with the actual development status of agricultural credit,credit granting,system and rural market,these risk factors are analyzed,all aspects of risk management are discussed,and the structure of risk management of agriculture-related loans is analyzed in detail,and the current development status of agriculture-related loans of A Rural Commercial Bank is understood.The research shows that the main problems existing in the risk management of agriculture-related loans of A Rural Commercial Bank are as follows: Agricultural loan credit quality is low,agricultural loan coinsurance serious failure,agricultural loan to pledge and defective rate is higher,the in-depth discussion,points out that the problem is due to a lack of strict verification and control mechanism,the coinsurance improper system is imperfect,agricultural mortgage pledge system and the lack of risk management and early warning system.Based on this,this paper puts forward targeted measures to improve A rural Commercial Bank to improve the risk management level of agricultural loans by improving the risk management check system of the bank,improving the rationality of the joint guarantee system of agriculture-related loans,providing the compliance of the effective pledge of the lender,building A complete risk early warning management system and other measures.To sum up,it is expected that this study can provide some reference and reference for a rural commercial bank to better play the role of agriculture related loans,and also provide useful theoretical and practical exploration for better promoting China’s rural economic development and effectively resolving the "three rural" problems.