Study On Risk And Suggestions Of Anhui Rural Microcredit Company

The rise of Micro-credit is a revolutionary financial innovation. At first, the purpose of this financial services authority is to assist the poor and promote rural economic development.More specifically, it fills the service gaps left in traditional commercial banks, rural village banks and rural credit cooperatives-some low-income groups.Micro-credit companies in Anhui Province are taken as the research object, the author studied on the field trips, finding out that these companies are at unique risks. Under such conditions, how to resolve and avoid risk have become serious problems that need to be solved urgently. This paper’s research content mainly includes following aspects.Firstly, it introduces the literature revies about rural micro-finance and its risk management, finding that there is a considerable division of risk classification based on available research. There are no practical risk indicator system. Moreover, most of the research focuses on macroscopic level rather than micro-level individuals.Secondly, it analyzes loan term, structure, demand and supply so as to lay a foundation for the next part.Third, it will explore the potential risks from the internal and external environment. Internal risks include risk of staff knowledge update, risk of internal control, risk of capital flows, risk of noncompliance, and risk of operational strategy. Meanwhile, external risks include risks of taxes, regulation, policy and law as well as external uncontrollable.Finally,the author creatively gives the practical recommendations in hope that it will contribute to the healthy development of Anhui Micro-credit,Including:provide policy support environment, strengthen internal control, recruit specialists, provide standardized risk rating scale, limit the blind expansion.