Bank Credit Business Risk Management Case About JA Country Study

In recent years, in order to support rural financial institutions’ rapid development, to assist Construction of New Countryside, China Banking Regulatory Commission (CBRC) has issued a series of policies to promote the development of village banks. The village banks has emerged and developed rapidly.The village bank, which is a new thing of the rural financial reform, not only increases the quantity of rural financial intermediation, but also it is a new attempt to promote the legalization of private finance. The time of village banks establishing is a critical period of building a new socialist countryside. In the past, financing rely on the rural credit cooperatives. However, there is a very long processing time. Because of that, farmers usually miss the best time and opportunity, so that many farmers cannot achieve the investment demand. Now, village banks provide farmers with a certain small loans without collateral, which is financial assurance for the new rural construction. The establishment of village banks will bring the competitive into rural economic, thus the village banks, the Agricultural Development Bank, Agricultural Bank, the postal savings banks, rural credit cooperatives and non-formal financial institutions are existing at the same time. And this coexist mitigated Chinese three dimensional rural issues which about agriculture, rural areas and peasantry. Besides that, this coexist promotes local economic developing faster. Furthermore, the established of rural banks further improved Chinese financial architecture. It is an exploration and innovation in China’s financial system, and enhanced the concepts and tools of banking supervision. Village Bank began as a pilot, then it from point to plane, from small and large, this form of banks now is all over China. At the same time, its feasibility, reality and the problems it facing may be text in practicing and developing process. And it is also a new challenge for the financial regulatory agency. Lastly, the previous non-governmental microfinance turned into a financial institution, fully integrated into the scope of supervision by the CBRC, is because of the village banks.Credit risk management is the focus of bank risk management. Since Chinese first village bank set up on March1,2007, credit risk management have developed five years in China. However, the village bank credit risk management is still in the initial stage of exploration. The low level of credit risk management, poor quality of credit assets is an important factor which restricts the development of village banks.In this paper some county in the village JA bank as an example, the bank credit business risk management as the research object, the dissertation is divided into four parts for writing:the first part is the introduction, divided into the research background and significance, research methods and basic framework; The second part is the case description, divided into JA town bank introduction, credit business and risk profile and credit business risk management present situation description; The third part is the case analysis, the use of village bank credit business risk management related theory, this paper analyses the JA town bank credit business risk management problems and causes; The fourth part is the countermeasures and enlightenment, puts forward some Suggestions on strengthening town bank credit business risk management strategies and enlightenment.