The Study On Microfinance Risk Management Of Rural Credit Coopetatives In China

Microfinance refers to the ongoing activities of a small amount of financial services provided to low-income families, as the main target is the poor, low-income people, small and micro business owners. Microfinance’s prominent feature is the debtor will be able to obtain loans by their credibility, do not need to provide collateral. As the main financial force to provide service to "agriculture, farmer and rural area", Rural Credit Cooperatives play an important role in providing credit to support the new rural construction,to help rural industrial structure adjustment, and to help farmers get rich. However, due to the cultural quality of farmers is relatively low, the credit environment in rural areas is relatively poor and farmers can not handle the effective mortgage loan, plus the rural credit cooperatives’ own risk control mechanism is not perfect, the external environment of the state in supporting microfinance risk is not enough, and many other causes, the microfinance risk of rural credit cooperatives is high. In today’s increasingly fierce market competition, to develop the rural market, the rural credit cooperatives must firmly occupy the rural market. But in order to occupy the market, the rural credit cooperatives must solve the problems of microfinance risk control. Therefore, to enhance the study of rural credit cooperatives’ microfinance risks is of great practical and far-reaching historical significance for the current new rural construction, to solve the difficult problem of farmers loans, the development of rural economy and increase farmers’ income.From the definition, the development of microfinance, researches and relevant experiences domestic and abroad about microfinance, this article first analyzes the development of rural credit cooperatives in rural credit cooperatives, and the actual conduct of the business case to the specific risk. Then, combined with case studies analyzes the risk of Laiwu Rural Credit Cooperative in rural credit cooperatives. And then, in order to promote sustainable and healthy development of rural credit cooperatives, proposed suggestions to optimize the legal environment, policy environment and credit environment to improve the external environment of microfinance management. Proposed suggestions to optimize the design of microfinance, innovative financial tools and products; establish and improve risk identification microfinance, measuring, improving credit risk quantification mechanism; establish a sound internal control mechanism; recommended the establishment of micro-credit risk compensation mechanism.