Study On Risk Management Of Rural Microfinance

Microfinance refers to is different from the formal financial institutions risk management techniques to borrowers were excluded from the formal financial system with smaller financial services. The development of rural microfinance in China, although only a short few years time, but its, as the most important forms of expression in the rural financial development, for our country "three agriculture" problem has important theoretical significance and practical significance. But in fact, there is a big agriculture finance risk, mainly includes two aspects of natural risk and market risk. Most of the farmers’living standard in our country is low, in the process of agricultural loans can be mortgaged property is relatively small, resulting in the size of the agricultural credit and risk resistance ability is not very ideal. China’s rural microfinance operations of more problems, mainly including credit risk, environment risk and natural risk, etc., which makes our country agriculture in the development process of micro-credit affected by a lot of, have become the most important restricting our country agriculture microfinance development bottleneck.Standing in the point of view in Hunan province, this article, therefore, study of Hunan province rural microfinance risk management, in order to be able to other regions or provinces in China’s rural microfinance risk management provide certain reference value and reference significance. In this paper, the research mainly includes the following aspects of content:The first part is the introduction of this chapter is mainly to this article research background, significance, the domestic and foreign relevant literature review and research the basic train of thought and framework are analyzed in detail. The second part is the summary of rural small credit risk, from the definition of related concepts, its characteristics, and the significance of small loans for agriculture development to rural construction are discussed. The third part through the empirical study of microfinance in Hunan province, analyses the problems in the process of development and the causes of these problems are analyzed. Rural microfinance risk mainly include natural risk, market risk, credit risk, operational risk, etc., and introduces the principal causes of these risks. The fourth part is the empirical part, the post office bank in Hunan province as an example, on the rural microfinance risk management present situation and the existing problems were described in detail. The fifth part, targeted put forward the effective measures to improve rural microfinance risk management in Hunan province and the suggestion, help the credit institutions or departments strengthen rural microfinance risk management.