Study Of Rural Credit Cooperatives For Poverty Alleviation Credit Risk Management In Yanchi County

Poverty alleviation credit (Poverty alleviation microfinance) is a kind of targeted business credit. It refers to finance service that special provides a small amount of loan for poor farmers in poverty-stricken area and leading enterprises poverty alleviation industry. Since 1970s, microfinance has played an important role in solving the world poverty problem. In China, the microfinance of RCC (Rural Credit Cooperation) is promoted by People’s Bank of China. After several years of development, it efficiently relieved the problem of difficulties for famers to getting loans, and achieved good social and economic benefits. RCC, as the local cooperation financial institutions, it mostly focus on develop loans in three agriculture. RCC is not only the base of rural finance, but also is an important section of rural finance system. In financial poverty-aid of Ningxia, Yanchi RCC through microfinance has always been guided by poverty relief and development and guaranteed by innovative mechanisms. It has tried to take highly good social responsibilities and gets more brand and products efficiency in poverty alleviation microfinance. However, there is a certain degree of risk management problems in concrete operations of Yanchi RCC.To establish scientific efficient prevention mechanism and improve the level of microfinance risk management is the finance support and guarantee for economic development of agriculture, rural areas and farmers and make sure the building of a new socialist countryside successfully. The paper selects a local small and medium-sized financial institution, Yanchi RCC, and try to study about the risk management of poverty alleviation credit. It starts from the concept of microfinance and analyses the situation of risk management in Yanchi RCC’s poverty alleviation credit operations by using related theories. The paper proposes a series of suggestions to the problems of imperfect risk management system, not further risk assessment before credit and risk point caused by asymmetric information after grasp the risk point of microfinance in Yanchi RCC. The suggestion such as identify the key risk point and fine analysis of risk are try to build a complete, scientific and efficient integrated risk management system, and hope to serve the economic development in poor areas of Yanchi and Ningxia through microfinance of RCC. It also tries to improve the risk prevention abilities of poverty alleviation credit, reduce business risks, increase operation efficiency and protect the interest of financial institutions. Meanwhile, the study also has reference value for RCC and financial institutions that carry out the poverty alleviation credit in other areas.