Risk Management Research On The Centralized Credit Rating Loan Business Of Farmers In A Rural Credit Cooperative

In recent years, a number of provincial rural credit cooperatives have widelypopularized the centralized credit rating business of farmers. This business modelcontains a relatively great risk while improving the loan business efficiency offarmers, which will directly affect both the operating safety of rural creditcooperatives and the health development of the entire rural credit system. Therefore, itis very necessary and urgent to conduct a research on the credit risk of the centralizedcredit rating business of farmers. In view of this, this paper adopts a research model ofa combination of standardization research and case study, which, based on the casestudy of A Rural Credit Cooperative, carries out a research on the management andcontrol issue about credit risk of the centralized credit rating business of farmers.Taking the analysis of factors of credit risk of farmers of rural credit cooperativesas the cut-in point, and comparing the process of the traditional loans to farmers andthat of the centralized credit rating loan business, a penetrating analysis is conductedon the causes of risk of loans to farmers of the centralized credit rating, on a basis ofwhich, a three-dimensional risk management and control model of the centralizedcredit rating loan business of farmers in rural credit cooperatives has been worked out,which integrates risk identification, risk assessment and risk control as a whole.Besides, based on the case study of A Rural Credit Cooperative, a systematic researchhas been conducted on setup and improvement about the credit risk control system ofthe centralized credit rating business of farmers. This paper puts forward athree-dimensional risk management and control model of the centralized credit ratingof farmers in rural credit cooperatives, which enriches the theoretical system ofcommercial bank risk management and control and enjoys important reference valueto commercial banks especially the risk management practices of the centralizedcredit rating loan business of farmers in rural credit cooperatives.