Risk Prevention Research On Farmers Loans In The Agricultural Bank Of Jilin Province

Jilin Agricultural Bank of China Agricultural Bank is the first carried out for the"three rural" financial services pilot provincial branches. In recent years, farmers inthe bank loan business has been rapid development, on the whole maintained ahealthy and stable development momentum, but the associated risks and problems aregradually exposed: First, the gradual increase of non-performing loans. At the end ofthis year, the Bank farmers small loans NPL balance4.5billion poor rate6.8%, andmay rise further. Second violations are increasing. All levels of line audit, inspection,investigation found that business start-up loans to farmers there are moreirregularities and potential risks, such as customer access too loose, the surveyexamined aspects of strict, post-loan formality, client manager violation operation.Three is hard for farmers to circumvent the process of agricultural production andmarket price risk of natural disasters fluctuations is becoming more prominent.Fourth, reputational risk management and control pressure. Governments, the publicand media attention on loans to farmers, or promote any illegal operations explainedmistake could cause serious reputational risk. Loans to farmers to strengthen riskprevention and control, to ensure that loans to farmers healthy and sustainabledevelopment of the agricultural bank to achieve service "three rural" basicprerequisite for sustainable development and the fundamental guarantee.According to farmers operating characteristics of Jilin Agricultural Bank ofChina, from place to place because of the line’s needs, through establishing the actualfarmers, targeted and adaptable management model and control means, in the business of promoting loans to farmers to achieve sustainable and healthydevelopment, has been actively exploring and useful practice. However, the bankloans to farmers to carry out its business, can not circumvent faced with thedispersion of loans to farmers, diversification, small-scale, asymmetric informationand uncertainty of use and other factors, it was decided to manage the long-term loansto farmers and complexity.Insist on risk under controlled conditions to achieve operating profit and socialunity, both essential requirements of commercial banks, Agricultural Bank of Chinaand also to achieve the "three rural" Customer mutual benefit and win-win, the onlyway to sustainable development. To further change in the history of extensivefinancial support for agriculture model, adhere commercial operations, the buildsystem risk control system, effective prevention and control of loans to farmers creditrisk, operational risk, reputational risk and other risks arising, good risk managementof loans to farmers, ensure that the farmers loan business healthy and sustainabledevelopment.In recent years, Jilin Agricultural Bank of China Agricultural Bank combinedwith practical, vigorously carry out the " three rural" loans, improve rural financialservices, practicing corporate mission. In the ongoing, in-depth course of business tocarry out loans to farmers, faced with new problems and difficulties: on the onehand, farmers loans to farmers to invest mainly in practice, the amount of small loansto farmers, farmers living geographically dispersed, management radius, asymmetricinformation a general lack of effective collateral loans, natural risks farmers breedingindustry to compensate the lack of effective mechanisms for long-term factors such asweak objective existence; on the other hand, as the main ABC lending operationscontinued to operate in the financial transaction costs facing rural high, long chainmanagement, junior officers overall quality is not high, difficult to manage internalcontrols and other problems. Therefore, building a comprehensive range of risk management, risk management process throughout, and full of risk managementculture, a new risk management tools is the basic characteristic of the riskmanagement system, becoming raise the level of risk prevention and control of loansto farmers, farmers realized loan business services place, an important part ofsustainable development goals.