Research On The Optimization Of Credit Risk Management Of S Rural Commercial Bank

Finance is the lynchpin of contemporary economy and plays an indispensable character in the distribution of resource and rural revitalization.For a long time,China’s credit market has not developed maturely,and the choice of reverse direction and the lack of useless morals have been universally so farmers continue to face long-term practical obstacles due to lack of funds.Farmers’ credit has a high risk of default on account of the short of information such as valid collateral and standardized financial data.To solve the problem of high risk of credit default of farmers,begin with the information asymmetry between farmers and financial institutions is the most important.Reducing information asymmetry is the key to identify and prevent farmers’ credit risk characteristics.It is necessary to verify farmers’ ability to pay and the role that farmers want to reduce farmers and financial institutions in determining loan credit risk and implementing targeted credit risk management.This paper examines the characteristics of farmers’ credit risk as an example of S Rural Commercial Bank and examines the current situation and problems of farmers’ credit risk management in S Rural Commercial Bank.This paper conducted a comprehensive review of the relevant concept and theory of credit risk management for farmers using the literature analysis method,descriptive statistics are used to describe and analyse the characteristics of farmers’ loans.Based on the positive analysis,the paper builds the logistic risk assessment model.Following a thorough analysis and study of the main problems and issues related to credit risk management in S Rural Commercial Bank,this paper makes recommendations for amelioration to the occurring problems.Firstly,in terms of identifying the credit risk of farmers,we should improve the credit pre-screening system and create a white list customers.Secondly,in terms of farmers’ credit risk assessment,we should establish a credit risk assessment model,and strengthen credit prudence.Thirdly,in monitoring farmers’ credit risk,we should establish an early warning mechanism for farmers’ credit risk and strengthen differentiated post-credit management.Finally,when it comes to farmer credit management,we should reform post-credit incentives and improve the internal risk control mechanism,and push forward the implementation of agricultural insurance.