HY Rural Commercial Bank Credit Risk Management And Countermeasures Research

Rural commercial banks, as the product of financial reform, which come from thedeepening reform of rural credit cooperatives, now become the major financialservices suppliers in rural areas, and also are the important financial linkages betweenurban and rural areas. HY rural commercial bank is the first native rural commercialbanks in HY city by restructuring HY Rural Credit Cooperative Union in August2008.Now it has been committed to improving financial services, and promoting localeconomic development. HY Rural commercial bank, whose credit risk level is directlyrelated to not only its own survival and development, but also affects the adjustmentof agricultural structure and rural economic development to a certain extent, So if HYRural commercial bank has no effective credit risk management and risk control, notonly will restrict its own development, but also affect the agricultural businesses ofHY City. In this case, researching rural credit risk of HY rural commercial bankbecomes a practical issue.This paper firstly describes the research related to credit risk management at homeand abroad as the theoretical basis of this research; then discusses the status of thecredit risk management of HY rural commercial bank by analyzing its operatingconditions, credit risk management, organizational structure and so on. Thirdly, usingspecific operating data to do an empirical study and divide the credit risk of HY ruralcommercial bank into four risks, which include moral risk, operational risk, credit riskand market risk. Then analyzes what affects HY rural commercial bank credit risk,includes poor rural credit environment, the quality of staff, risk awareness andmanagement systems and so on. Lastly according to the practical problems of the HYrural commercial bank this paper proposes relevant policy advice.This study not only helps to improve HY rural commercial bank’s risk awareness andits business performance, but also helps to provide reference for other financialinstitutions or other city’s rural commercial banks.