Control Of The Risks Of Rural Banks

The reform of the rural financial system is an important part of China’s gradual economic reform, the sustainable development of the rural economy, the process of urbanization to promote and co-ordination of urban and rural economic development, are inseparable from the support of rural finance. The problems of China’s rural financial market are as follows:financial institutions’ network coverage is low, competition is not sufficient; financing in rural areas "siphon" effect caused by capital outflows,"systemic disinvestment"; private capital is difficult to find a normalized investment channel under long-term financial repression conditions. Therefore, it is necessary to create a new type of rural financial institutions to solve the problems of China’s rural financial market.Since2004, the central government has released document number one for ten years to focus on the "three rural", which provides policy support for the establishment and development of the rural banks. As of February2013, as the main force of the new rural financial institutions, rural banks in China and its number of branches has reached1502. In2013, the CBRC issued the "rural small and medium-sized financial institutions supervision of work of the notice" put forward new requirements for risk control of village banks, rural banks in the amount of accumulation to a qualitative leap in the process also exist the problem of risk prevention and control. It is necessary to study the risk control related issues of rural banks, making sure rural banks work better for the "three rural".In this paper, the risk of China’s rural banks control study from a qualitative and quantitative point of view. Qualitative point of view in the village bank and its risk control related research literature review on the basis of the PEST analysis embedded into the SWOT analysis to analyze the state of development of the rural banks and rural banks risk types, characteristics and control status elaborate analysis from internal and external environmental point of view put forward recommendations to improve rural bank risk control mechanism.Quantitative point of view is to learn from the experience of commercial banks and foreign typical village (community) bank risk control measure index system of risk control ability of the rural banks, risk control ability by an example of China’s rural banks, coming to our village banks from the regulatory requirements on risk control is still lagging behind. Compared to in the risk database construction, the construction of farmers credit evaluation system, professional risk management, personnel training and other aspects of the commercial banks are still large gaps.