Research On Rural Micro Credit Risk Management Model

China, as a large agricultural country,its agriculture residents status in the national production of basic industries. What is more, agriculture is always recognized as the people’s livelihood. Today, compared with the rapid development of China’s industry and tertiary industry, agricultural development has stagnated.In order to accelerate agricultural development, government has implemented various measures to solve the "three rural" issue policy, and one of the most effective measures is using rural microfinance. Rural microfinance as an emerging project which can support the rural finance plays an important role in enhancing the income of farmers, and solving difficulty for famers to get loan. However, during the operation of the20-year, the rural microfinance models still have many problems on the selection and risk management, and these problems slow down the development rate of rural microfinance.As a result, the rural microfinance cannot effectively play its role in stimulating rural economic growth, and enhancing the farmers’ income.Firstly, analyzing the foreign and domestic research materials and results which relate nature of the risk, risk sources and risk management models, and then summarize conclusion which as the theoretical support to discussing how to choose right rural microfinance risk management model. Combined with theoretical research on the economics of rural micro-credit risk management and the characteristics of rural microfinance development, we can analysis the main factors involved in risk management combining theory with practice, and the find the right choice for each factor to manage the rural micro-credit risk effectively. By the analysis of risk management measures based on the choice, then we can design evaluation system to judge the various risk management models and provide a theoretical basis for the judge of the suitability in various risk management models and operating efficiency.In this process, we recognize some useful economic theories and use these as the basis to guiding discussion on foreign advanced risk management models and analyzing domestic rural microfinance risk management models.Before the introduction of domestic micro-credit risk management model, firstly the passage introduce three typical rural microfinance risk management models around the world, comparing each model and analyzing its risk management experience which is worth for us to learning. Microfinance management model such as Bangladesh GB model,Bank Rakyat Indonesia, Bolivia sun Microfinance Bank rural development models and so on.Each model include the face of the main aspects of the object, the form of loans and organizational management structure such as a comprehensive comparative analysis of the various modes gifted the disadvantage, which is worth our reference and summarize risk management experience.In summing up the experience of excellent management mode while we just state a brief history of the development status of China’s rural micro-credit, and then analyze each typical rural micro credit risk management model that if it is suitable for China or not.by combining and analyzing we just find each risk model has its own advantages and disadvantages.In order to develop an effective risk management model we only can choose to mix and match the various modes advantages of using hybrid risk management model of microfinance in rural areas. At last we select a domestic bank as an case which just use the hybrid model of risk management, and details its operating conditions and running characteristics.By the operation of rural credit cooperatives, our analysis also find that the risk management models are still part of the problem in our country running, we need to explore the root causes of the improvement of rural microfinance policy recommendations which are based on risk management issues. Main measures conclude such as enhancing the quality of rural micro-credit risk management through risk prevention, innovating the Financial service tool for new-type rural financial institutions and the government pay more efforts to increasing legal policy and organizing more entrepreneurial skills training for farmers so as to enhancing their credit awareness After all,through these measures, the rural microfinance can truly lend tremendous role in promoting new financial instruments for agricultural development to ensuring the sustainable development of small rural credit operators. The innovation lies in this article:(1)In this paper, different from more attention paid on urban rather than rural development model, we mainly research and analysis the rural micro-credit risk management model. Linked with the "three rural" macro background,and stagnated factors affecting rural microfinance development, what is more,we even make recommendations for improvement to strengthen its risk management.(2)In the past,research on the risk of microfinance always through the data model to model and analyze the impact factors of conventional methods of improvement measures. This paper select case study methods to analysis the problems, compared with several typical microfinance risk management model, and then combined with our own characteristics,and at last concluded measures to improve risk management of microfinance recommendations.