Research On Credit Risk Management Of Rural Credit Cooperatives

In the reforms of recent years, rural credit cooperatives have settled a great deal of bad assets and produced remarkable stage results. But it is very far from the aim of rural credit cooperative.The final aim of the reform of rural credit cooperative is to establish a financial system to serve agriculture, the countryside and farmers. The reform is going on. There are a series of long standing mistaken ideas of knowledge and it s practical operation in the present reform progress and tendency in respect of the rural credit cooperative's property right , management system and the organizational mechanism design, the share of the interests, etc. The pattern of the stock holding system reform may have a tendency of deviating from serving"three agriculture problems". The dual management of the central and local governments would probably face local fiscal risk and moral hazard problems. Perhaps, it is not suitable for the provincial credit cooperative to union to assume the government's supervision function. The too high level of the dividend may cause the confliction of t he role between the administrative personnel and the common members. All the problems would be settled in the reforming.Through analyzing the bank credit risk management principle, the way of management, the correlation theories and the analysis of bank credit risk management case, this article discusses the development direction and the essential method of credit risk management for rural credit cooperatives in China.Concerning risk management analysis of rural credit cooperatives, this article found the problems of risk (including credit risk, marketing risk, operating risk) management for rural credit cooperative are most obvious. Especially in the credit risk management for rural credit cooperative, the ability of controlling risk and the level of management technology is in low condition. The qualitative analysis are many, the quantitative analysis are few. There is no organization guaranty and good credit culture in the credit risk management for rural credit cooperatives。From distinguishing credit risk angle, we summarize methods of identifying credit risks in west banks, and then we found, there are many problems on the process of distinguishing credit risks of the loan to our country rural area credit cooperative and the commercial bank. So we bring forward beneficial suggestions on improving our country rural credit cooperatives'credit risk distinguishing aspect,including: we should construct the strict responsibility investigation system, and establish inspection system that takes risk as core, and reform the credit investigation way at present, and establish the credit investigation pattern which unifies qualitative analysis and the quantitative analysis, and roundly implement loan five level of classified method.From credit risk measurement angle, comparing with developed country, we have very long way to go in level and technique of credit risk measurement, especially for rural credit cooperatives. We suggest that we need establish violation database, further refine loan risk graduation, pay more attention to develop and research measuring model, and perfect risk management system and achievement inspection system.From credit risk controlling angle, we first discuss credit risk managing organization and good base on credit risk culture, and second we discuss deeply how to establish system of credit risk controlling for rural credit cooperatives, bring forward four kinds controlling measurement. First, we should construct perfect risk management system, cultivate good credit culture; Second, we reasonably extract reserve fund for bad debts to compensate loan risk loss; Third, we need fix loan price reasonably to balance relation between risk and income; Forth, we should adopt the way of multi-dimensional disposition for credit fund to disperse credit risk...