Research On The Problems And Countermeasures Of Credit Risk Management In Rural Commercial Bank

In 2015,the Hrural commercial bank was reorganized from the original H Rural Credit Cooperative.The ratio of nonperforming loans in the city’s financial system has been the highest for a number of years due to the city’s outdated business philosophy and external environmental factors.The People’s Bank of China and the Banking Insurance Regulatory Commission categorized it as a high-risk institution in 2018.According to the national three-year action plan to prevent and resolve major risks,the regulatory authorities required Hrural commercial bank to "take off its hat" by the end of 2020.Nonperforming loans at the bank remained high,and it was difficult to reduce the stock of nonperforming loans,revealing the bank’s serious deficiencies in credit risk management.In order to improve its credit risk management and control capabilities,a company must analyze its existing credit risk management problems,summarize the underlying causes,and implement targeted optimization and improvement.In this paper,using the Rural Commercial Bank as the research object,the questionnaire survey method,and learning and drawing lessons from the theoretical achievements of previous scholars,four first-level indicators and 54 second-level indicators of credit risk management evaluation are established according to the four links of risk identification,evaluation,disposal,and prevention and control.Considering the current credit risk management situation at Rural Commercial Bank,Focusing on the problems existing in the dimension search management with a low evaluation score,this paper proposes,based on the questionnaire survey and interview results,some countermeasures to solve the credit risk management problems of Hrural commercial bank.The results indicate that Hrural commercial bank has a number of issues,including a failure to fulfill the responsibilities of the risk review institution,a singular approach to credit risks,inaccurate measurement of the probability and loss of risks,and unreasonable credit risk prevention and control goals.To address these issues,the author proposes operational countermeasures from four facets of credit risk management,including increasing risk point identification and evaluation,strengthening real-time risk evaluation,perfecting the nonperforming loan risk disposal mechanism,and optimizing credit risk management objectives.These countermeasures are not only useful for the application of the Hrural commercial bank to improve the level of credit risk management,but they also serve as a benchmark for similar banks attempting to resolve credit risk management issues.