Research On Microcredit Risk Management Of Rural Commercial Bank In S County, Huna

Rural commercial banks,which are restructured from rural credit cooperatives,are the rural cooperative financial organizations with long history,more institutional outlets,wider service area and distinctive characteristics among many financial institutions in China.As an important financial means for rural economy to overcome poverty,with the development of rural economy,the microfinance business of rural commercial banks has developed rapidly.With the rapid development and promotion of micro-credit,micro-credit of rural commercial banks in China has become an important tool to promote rural finance and economic development.However,due to unbalanced regional economic development,incomplete restructuring of rural credit cooperatives,lack of microfinance talents,imperfect establishment of effective credit system,immature macro-environment and late start of microfinance development of agricultural and commercial banks,microfinance of agricultural and commercial banks in China still faces many risks(such as interest rate risk,market risk,credit risk,etc.).The micro-credit risk of Agricultural and Commercial Bank not only makes it difficult for farmers to borrow but also for banks to collect money.In the long run,it will seriously hinder the healthy development of rural finance and economy,and it will be difficult to realize the proper meaning of inclusive finance.Therefore,how to effectively control and manage the risk resolution of rural commercial banks’ micro-credit is the key to the healthy development of rural commercial banks’ micro-credit business,and also the core of promoting rural economic and financial development and solving the problems of agriculture,countryside and farmers.This topic focuses on the composition and management of micro-credit risk of rural commercial banks in S County of Hunan province,which has important theoretical and practical significance.This paper takes the micro-credit business of rural commercial banks in S County of Hunan Province as the research object,mainly through the empirical analysis of the present situation of the development of the micro-credit business of rural commercial banks in S County of Hunan province,adopts the analytic hierarchy process,establishes the risk evaluation index system,constructs the judgment matrix,combines qualitative research with quantitative analysis,calculates its risk index,and further finds out the impact of rural areas.The main risks faced by commercial banks’ credit business are followed by relevant risk management and control strategies and suggestions.The main contents of this paper include:Firstly,the development and research status of micro-credit at home and abroad are briefly described,and then the relevant basic theory of risk management and control of micro-credit is further explained.Secondly,the risk evaluation index system of rural commercial banks’ micro-credit is constructed by using analytic hierarchy process,and the status and risk of rural commercial banks’ micro-credit in S County of Hunan Province are analyzed.Finally,from the aspects of perfecting the legal environment,policy environment and credit environment of microfinance management,this paper puts forward some suggestions on perfecting the external environment of microfinance risk management,including perfecting the process of microfinance management,optimizing the design of microfinance products,and establishing an information system with risk identification and early warning mechanism of microfinance.In the aspects of unification,perfection of internal control management mechanism and perfection of micro-credit risk compensation mechanism,the paper puts forward measures to strengthen the internal mechanism of micro-credit risk management of Agricultural and Commercial Bank.