Research On Credit Risk Control Of X Village Banks

As a unique financial institution in rural areas,village banks take serving Sannong and rural revitalization as their business objectives,adhere to the principle of small and decentralized credit,make full use of geographical advantages,and effectively solve the problem of incomplete coverage of rural financial services and single financial supply model.and other issues,further enhancing the vitality of rural financial competition.However,due to the small scale of capital,short development time and special market positioning,the credit risk of village banks is much higher than that of other commercial banks,and faces the dual pressures of credit business expansion and credit risk control.This paper conducts a case study on the credit risk control of X village bank,which has important theoretical and practical significance.Guided by the information asymmetry theory,COSO comprehensive risk management theory,and Basel Capital Accord III,and based on the supervision system,internal control,and internal audit guidelines of village banks,this paper analyzes that village banks are characterized by their special shareholding structure and market positioning.And the inherent defects of internal control,which make credit risk control special.Through quantitative analysis of the credit scale,credit structure,and overdue situation of credit assets of X village and township banks,it is pointed out that there are problems such as insufficient risk resistance and low quality of credit assets,and qualitative analysis of the internal control and internal audit of credit business is carried out.The essence of risk control,and the reason behind the problem,is that the internal control of credit business is flawed and the internal audit is yet to be improved.Therefore,a complete targeted and operable credit risk control and rectification plan is proposed.The case of X rural bank credit risk control has important implications for improving the quality of loans in rural areas.The credit risk control of village and township banks should achieve due diligence before lending,accurate review during lending,and strengthened management after lending to improve the internal control of credit business;give play to the guiding role of the main sponsoring bank,clarify the positioning of internal audit functions,improve audit technology and methods,Pay attention to the application of audit results and establish risk-oriented internal audit;strengthen the qualitative analysis of small and micro loan enterprises,pay attention to the analysis of corporate cash flow,and establish an enterprise information database to improve the credit evaluation system of small and micro enterprises;correctly measure credit risk capital and actively raise funds Sufficient capital to meet regulatory requirements for credit risk capital.