Research On Risk Control And Management Of Forestry Equity Mortgage

After reform and opening up and the continuing reform of collective forest rightsystem, the enthusiasm of the foresters gets motivated and the forestry economics getsdeveloped. But lack of funds has hindered the sustainable development of forestry. Theemergence of forestry equity mortgage widens the source of funds and solves thefinancing problem of the foresters.However, the forestry is often impacted by natural disasters and other uncertainties.The long forest production cycle, slow recovery of funds, high investment of funds andlow income restrict the development of forestry. In addition, the Bank, which is the mainbody of the financial system, its credit risk not only has an impact on themselves, butalso the development of society, may also affect the national economy. Therefore, theresearch on risk management of forest equity mortgage is of great significance.Combing with constitutional economies, transaction costs, equity and riskmanagement theory, based on sorting out the related literature of the domestic andforeign on forestry equity mortgage and its risk management through checking thedevelopment status of forest equity mortgage, the paper analyzes the risks existing in theforestry equity mortgage and their reasons. Finally, taking Agricultural Bank of China(ABC) for example, combining with the status quo of ABC to carry out forest rightmortgage, the paper analysis the risks of existing within ABC, proposes measures to dealwith risks and provides a practical reference for ABC.