The Study On Rural Financial Risk Management In Northern Part Of Jiangsu Province

With the out breaking of subprime mortgage crisis in United States, the global financial system has suffered tremendous impact. The influence on the financial industry of China that includes rural cooperative banks is relatively minor, but it neither means that our risk management system is perfect absolutely nor that our management ability of banking industry on financial risk is superior to western countries. Owning to the laggard development of China financial system, the slowing financial innovations and the serious supervision of outbound investment, our financial system can’t avoid the impact.However, to reform of laggard institutional mechanisms can’t guarantee that we can escape the suffering of financial crisis forever. The risk management of rural cooperative financial agencies is on the lower-level, it still lacks of mechanism regulation and supervision on how to identify, analysis, forecast and dissolve of financial risk. At the same time, the financial industry has accelerated its pace of reform and opening-up which would force managers to improve preparedness and management.It has illustrated the basic principle of financial risk in general. On the base of retrospection about our rural credit cooperatives development process, taking the rural cooperative financial sectors in north Jiangsu as study object, it has analyzed the credit risk condition of Jiangsu Funing rural cooperative bank which is carrying out reform on a trial basis of rural financial system and has discussed the external and internal trigger factors of rural financial risk, what’s more, it has learned several foreign major rural cooperative financial risk management patterns as well. At last, the countermeasures and thought has proposed on how to reinforce rural financial risk prevention and management in north JiangSu province.