Study On Individual Credit Risk Management Of ZBL Rural Commercial Bank

The rural commercial bank of was founded on the previous rural credit cooperatives, most of whose loan objects and prospective borrowers are low-leveled, weak-based and low-resistanced minor enterprises and individual farmers because of the historical factors and other limitations. Thus the Bank of Agriculture and Commerce can the easily transferred with the risk. So it is urgent to build a system of credit risk for individuals management to improve the ability to resist risks for the Bank of Agriculture and Commerce which plays an important role not only for the economical and social development in rural areas but also for the security of the national economy. The study on credit risk for individuals in ZBL Bank of Agriculture and Commerce can reduce the propitiation of non-performing asset (NPA) and improve the profitability of bank of agriculture and commerce. ZBL Bank of Agriculture and Commerce successively launched personal credit products focusing on the second-hand house loans, student loans and small secured loans. But there are many existing problems on the organizing structure, risk mechanism, as well as the regulations, skills and afterward management. This study is searching specific reasons from inside and outside environment, providing support for the following study.Based on the interpretation of relevant theories, the study analyzed the major risks of individual credit, constructed a model on the individual risk assessment, and put forward strategies on the resistance of individual credit in ZBL Band of Agriculture and Commerce.This paper confirms the index weight by using Analytic Hierarchy Process, and conducts the credit evaluation by using AHP comprehensive evaluation method. The individual credit evaluation model is built by forming an index system and matrix table. As shown in the examples, this method to predict individual credit risk evaluation is better than the traditional ones. In the end this paper put forward strategies for resisting individual credit risk which mainly concludes building an inner complete individual credit risk management system, actively defending loaner’s credit risk, constructing good assorted system, and taking effective measures in improving the financial environment in rural areas.