Research On Credit Risk Control Of YB Rural Commercial Bank

In recent years,due to the impact of various factors such as the epidemic,the macroeconomic situation has been sluggish and financial risk events have occurred frequently.The country attaches great importance to preventing systemic financial risks.With the country’s emphasis on "agriculture,rural areas,and farmers" and the policy support for rural local financial system construction,rural commercial banks have experienced rapid development and become the main force of the county economy and rural areas.With the economic development of rural areas,the demand for credit continues to increase,The credit scale of rural commercial banks is constantly expanding.Due to incomplete reform and other reasons,the system and institutions have not kept up with the development process in a timely manner,resulting in a declining quality of credit assets,a rising proportion of non-performing loans,and an increasing operational risk.The healthy and sustainable development of rural commercial banks is seriously threatened,making it necessary for rural commercial banks to immediately seek solutions,improve the current situation of credit risk control,and enhance their own level of control,Reduce the proportion of non-performing credit assets,optimize the quality of credit assets,and prevent significant credit risks from occurring.In the process of credit business development,YB Rural Commercial Bank also faces the problem of improving its credit risk control level and a relatively high proportion of non-performing loans.In order to change the current situation of credit risk management and improve the bank’s credit risk management capabilities,this article uses Analytic Hierarchy Process and Fuzzy Comprehensive Evaluation Method to construct a model to evaluate and calculate the bank’s credit risk management level.Then,the evaluation results are analyzed,and prominent problems in the bank’s credit risk management process are found.Based on the bank’s actual situation,corresponding scientific and reasonable countermeasures and suggestions are proposed,Assist the bank in continuously improving its credit risk control capabilities and reducing the occurrence of credit risks.Firstly,establish an indicator system for credit risk management and evaluation.This article adopts the method of literature research and combines the current control situation of rural commercial banks in China to identify key factors that affect credit risk control.It is divided into 6 primary indicators and 22 secondary indicators,and constructs an evaluation index framework for credit risk control.Then,through a questionnaire survey of industry experts,the importance of each indicator to the higher-level indicators is determined,The judgment results obtained through consistency testing will be used to establish weights.Finally,the Analytic Hierarchy Process was used to determine the weight proportion of each indicator in the indicator system.Secondly,construct a comprehensive fuzzy mathematical evaluation model for credit risk management and control of YB Rural Commercial Bank.Based on the established credit risk management evaluation index system,the factor set,indicator weight set,and evaluation set were determined,and a mathematical evaluation model for credit risk management was established.Set up a matrix survey questionnaire based on the indicator set and evaluation set,distribute the survey questionnaire to the credit practitioners of YB Rural Commercial Bank,collect relevant data,conduct statistical analysis on the data,calculate each indicator and overall score through the evaluation model,to understand the risk control level of YB Rural Commercial Bank,and then conduct joint analysis on the information and score collected through on-site research,Identify the typical problems and weak points in the current credit risk control process of YB Rural Commercial Bank.Finally,sort out the problems and propose reasonable countermeasures and suggestions.By extensively drawing on the excellent methods proposed by various peers and relevant researchers,combined with the market situation of YB Rural Commercial Bank,this paper proposes targeted suggestions from five aspects.The main recommendations are: firstly,to strengthen the construction of credit business operation environment,secondly,to enhance risk identification and evaluation capabilities,thirdly,to improve the implementation level of risk control activities,fourthly,to optimize the construction of information exchange and feedback mechanisms,and fifthly,to strengthen internal supervision and management.Through the proposed countermeasures and suggestions,YB Rural Commercial Bank can provide important reference for improving its credit risk control system.It is hoped that it can improve the bank’s credit risk control level,help it maintain the bottom line of credit risk,and provide reference for other banks with the aforementioned problems.