The Study On Risk Assessment And Management Of Rural Microfinance

As a financial product and innovative mechanism serving peasant households, rural microfinance can provide financial support for the vast farmers, and it is a very important access to finance in the course of casting off poverty to get rich. However, the risks of microfinance gradually emerge from the water with its popularization, like weak loan,descending maturity recovery rate and so on, all these issues threaten the existence and development of microfinance. Therefore, how to put the microfinance risks under control and realize a sustainable development gains more and more concern.In order to control the risks of rural microfinance, the article structures a microfinance scoring system by outlining the pattern, the feature, the development history and current situation of microfinance in our country, also by analyzing the main risks and causes of formation. The article utilizes credit scoring method to determine the microfinance risk appraisal model index, and uses analytic hierarchy process to determine the weight of credit appraisal index, and then builds the credit evaluation model to show the severity of natural risks, market risks, moral risks and operational risks that rural microfinance bears. Finally, based on some comparatively important indexes, the author proposes some suggestions. Firstly, promote the thoughts of integrity, consummate the construction of personal credit institution, and optimize rural credit environment; secondly provide systematic supporting service for the peasant households, keep a lookout on shifting the credit risks from the market; thirdly specify operational behaviors, improve the internal control mechanism of microfinance; broaden the business scope:and the last but not the least, build the agriculture insurance system, and make the sustainable development of rural microfinance come true.