Credit Risk Management OfThe Rural Microfinance

In 1976, Muhammad Yunus created micro-credit in Bangladesh. It had made significant achievements in the field of poverty about eradication, and promoted the regional economic development, which has aroused widespread concern, attention and promotion around the world. Micro-credit helped the poor population in the system of market economy by exploring an effective financial service which achieved sustainable development, and it had been widely recognized in the world. Micro-credit is a financial service which continues to provide a small amount of credit service for the poor population, low-income groups, and small or micro enterprise. Now China needs to transform its economic strategy and solving the "Three Rural Issues" is the focal point, which is about providing adequate financial services in the rural areas. The breadth and depth of have been further broadened since its introduction. In 1993, Micro-credit was introduced into China, and it has played a huge role in reducing poverty. But in China the time of its development is relatively short and the development mechanism is inadequate, and it has exposed much credit risks in the process of its implement. As the main issuing authority of Micro-credit, the rural credit cooperatives have been playing an important role, so studying the micro-credit risk’s evaluation and credit rating stability of the rural household is very necessary.In order to control the risks of Micro-credit, this article gives an account of Micro-credit, which involves its concept, pattern, feature, development history, current situation and main risks in our country, then structures a micro-credit scoring system. The article uses analytic hierarchy process to determine the weight of credit appraisal index, and then builds the model to show the severity of these risks. In the end, in view of some comparatively important indexes and current situation, the author gives some suggestions which consist of completing the construction of personal credit system, expanding business scope against the market risks, improving the internal control mechanism of micro-credit, building the agriculture insurance system against natural risks and absorbing the professionals.