Studies On Risk Management Of Policy-oriented Loans Of ADBC Jilin Branch

Policy-oriented banks are also banks. We must follow the general law of bankpolicy and under the premise of the implementation to achieve management benefit,dissolve the risk, improve the quality of assets and realize sustainable development.Policy-oriented loans refers to the risk loads issued by agricultural developmentbank Independently in order to perform the function of Agricultural DevelopmentBank, support the acquisition of grain, promote the production and marketing, andmaintain important agricultural products and agricultural production materials marketstable.Policy-oriented loans have the following characteristics:1the nature of loansbetween policies and commerce;2. the purposes of loans are specific;3. it is lowto access,but strict on post-loan management;4. The loan time limit is generally lessthan a year;5. Credit exposure is bigger.Current situation of policy-oriented loans at ADBC Jilin Branch is: anti-riskability is poor and it affects the first source of repayment; financial accounting is notstandard, it does not favor the credit supervision; underrepresented money withdrawnfrom circulation sales; personal bank card repeated; the management measures maynot be implemented and risk prevention and control is more difficult. Specific riskpoints embodied in: first, it is the loan risk. Compared to commercial Banks, thebank’s choice of guarantee way has some limitations. Policy-oriented loans are onlyvalid assets when "should be offset against the best" personal property and corporaterepresentatives handle credit, collateral issued after the credit. The second is marketrisk, China’s agriculture has a "weak nature", and agribusiness profit level is low, soit’s ability to resist risks is poor. With the deepening of market-oriented reforms, thegradual liberalization of the market and the increasing influence of the internationalmarket, the risks for enterprises is bigger and market risk on credit funds also increases. The third is the moral hazard, mainly the risks corporate bad faith,diversion and misappropriation of credit funds.For the above risks, risk prevention and control measures must be studied, thereare three: First, cover credit exposure; the second is to increase the proportion of threegold to cover market price risk; the third is the implementation of quality customerstrategy and to cultivate high-quality customers. At the same time, to take thenecessary measures to ensure that these risk control measures are implemented: first,ensure the management requirements are carried out; secondly, strictly cashincentives and punishments; finally, to establish business credit files.