Research On Risk Management Of Town Bank

With the rapid economic development, China has formed a mature city financialmarket. To further improve the city financial market system at the same time, ourcountry is facing the arduous task of building a new socialist countryside. small andmedium-sized rural enterprises, farmers and new rural industry urgent need forsubstantial financial support each passing day. However, large commercial banks havewithdrawn from the rural financial market in recent years, and policy financialinstitutions play a limited role. Such cause the supply and demand of rural financialmarket in a increasingly acerb contradiction. In this context, the government began topublish a series of policy, encourage the construction of new rural financial institutions,town banks emerge as the times require, However, some risk factors gradually exposedin the process during the management, which must be solved. The exploration andresearch of town banks manage risk factors and put forward relevant managementstrategies for controlling of operating risks of banks, and provide help to the sustainabledevelopment of town banks, provide practical management solution as the target. First ofall, introduce the town bank background and definition, then compare the similarities anddifferences with the general commercial bank, analyzes the necessity and advantage ofthe town banks. Secondly, introduce the present situation of town bank, especially theexposed management risks in the present stage, using the literature survey method andapplied economics, management theory to analyze the risk factors. Finally, on the basisof the previous article, put forward these business risk management measures. Drew thefollowing conclusions:1,use cluster management to set up the lending group, as a base oftown bank credit rating system. According to the actual situation to establish rural creditrating scheme, with the local village committee organization, farmer representatives andtown bank employees in the credit assessment team, use farmers’ production status,personal reputation, neighborhood information as the evaluation index, to adapt to theenvironment of rural financial credit evaluation method. In2, according to the actualsituation of the development of rural financial risk management system and mechanism.In accordance with the credit risk transfer order, the advantage feature of the risk earlywarning system is to reflect. In the division of risk liability, timely abnormal situationand possible risks to the relevant responsible person, to judge the risk level and thedisposal opinions. The internal control of Town bank should be carried out throughouteach link and job, do the censoring, consider each loan before the credit investigation,loan after the audit surveillance and due to the implementation of specific head cashier.