Research On Management Of Grain And Oil Loans Credit Risk In Inner Mongolia Agricultural Development Bank

With the improvement of domestic and international financial regulatorystandards and the increased support to rural finance from the state, it is imperative forAgricultural policy banks to take measures to effectively prevent and resolve its creditrisk. The proactive management of credit risk not only can ensure the smoothimplementation of national macroeconomic control policies, but also can improve thequality of Agricultural policy bank credit assets and promote Agricultural policy bankdevelop continually and healthily.In this paper, starting from the concept of Agricultural policy banks credit, andthen analyzes the characteristics of Agricultural policy bank credit risk. Compared tocommercial banks, Agricultural policy bank credit risk has the characteristics ofpolicy-risk dominated and credit risk centralized. Basing on drawing on theexperience in credit risk management of foreign Agricultural policy bank, combiningwith the problems of management of grain and oil loans credit risk in Inner MongoliaAgricultural Development Bank: poor management of food acquisition loanconditions, neglect of after-loan regulatory in grain and oil loans, imperfections ofgrain and oil loan credit risk control system, maladjustment of team building andcredit business development. I make four recommendations to management of grainand oil loans credit risk in Inner Mongolia Agricultural Development Bank. First, onthe base of adhering to the principle of ensuring quality not inferior and strengtheningpre-loan due diligence, to strictly control grain and oil purchase loan conditionsthrough the establishment of strategic grain and oil quality customer base. Second,improving awareness of after-loan regulatory in grain and oil loans and combiningwith grain and oil non-performing loans file management system and sales monitoringsystem of grain and oil, to strengthen the efforts of grain and oil loans after-loanregulatory. Third, on the basis of clearing grain and oil loans risk managementresponsibilities and improving risk management mechanism of credit guarantee, tofurther improve the credit risk control mechanism of grain and oil loans. Fourth, toimprove the quality of staff and the effectiveness of human resources as a startingpoint, strengthening the credit team building by the promotion of credit riskmanagement culture and improvement of performance appraisal system in InnerMongolia Agricultural Development Bank.