Research On Microcredit Risk Management Of A Rural Commercial Bank

Rural commercial Bank has always been the main force of Rural finance in China.In order to promote the vigorous development of rural finance,The State Council transformed the former rural credit cooperative into rural Commercial Bank.By the end of 2020,the number of existing rural commercial banks in China was 1,539,accounting for 34.05% of the national banking financial institutions,and the market size reached 1.419 billion yuan by the end of 2020.However,with the development of digital finance and inclusive finance,the rapid expansion of credit business has gradually increased the survival and competitive pressure of RURAL commercial Bank,and put forward new requirements for the ability to resist credit risks of rural commercial Bank.A Rural Commercial Bank is rooted in China.After years of development,it has developed its own business process and corresponding microfinance risk prevention and control mechanism.However,due to changes in the market environment,the outbreak of COVID-19 and the expansion of service objects in recent years,A Rural Commercial Bank has appeared loopholes in microfinance risk management.Taking A as an example,this paper has A general understanding of the risks of microcredit by reading A large number of literature,and then obtains relevant data of microcredit business of A Rural Commercial Bank through field research and interviews.Starting from the theory,this paper first expounds the related concepts of microcredit risk management,which lays a foundation for the subsequent analysis.Secondly,it analyzes the management status of A Rural Commercial Bank in microfinance and identifies four types of microfinance risks.Then the analytic hierarchy process(AHP)is used to evaluate the four risk types,and combined with the evaluation results,the problems and causes of A Rural Commercial Bank in microcredit risk management are analyzed.Finally,corresponding optimization schemes are proposed for the four risk types mentioned above.Based on the actual situation of the unit,this paper refines the factors that affect the risk of microfinance,identifies the risk from the source,and prevents and controls the risk.Internal management should be strengthened for operational risk,credit rating should be improved for credit risk,co-insurance system should be improved for market risk,and public opinion management ability should be improved for reputation risk.This study aims to improve the risk management level of microfinance of A Rural commercial Bank,promote the development of county economy and "agriculture,rural areas and farmers",and provide reference for related rural commercial banks in A city in microfinance risk management.