The Research On The Risk Management Of Rural Commercial Banks

China began to joint-stock restructuring for rural credit cooperatives in Jiangsu Pro vince from 2000, now three rural commercial banks has been setted up.In order to provi de a more market-oriented financial services for rural, the forming and restructuring of r ural commercial banks nationwide is beginning.With the development of the rural com mercial bank, the rural commercial bank has made an important Contribution to the stab ility of rural areas, farmers increase income and agricultural modernization development. In the development of 15 years, the rural commercial bank that restructured has a signi ficant improvement in the level of management, asset quality and profitability of social benefits, and provides a strong support in accelerating the development of modern agric ulture and solves the issues of agriculture,farmer and rural area. In 2010 December, the l isting of Chongqing Rural Commercial Bank in Hongkong opened the prelude of listing of rural commercial bank. Many mature rural commercial banks have begun to prepare for the listing, in the fierce competition in the market China’s rural commercial banks is a step forward.China’s financial system basically can be divided into large state-owned commercia l banks, joint-stock commercial banks, policy banks, city commercial banks, rural com mercial banks and rural banks. Policy bank is mainly to implement and cooperate with t he economic policies of the government, not to profit for the purpose of economic activi ties, therefore, the policy banks are not included in this study, other commercial bank go t the profits from managing the risk. So In a competitive marketplace, how to reduce th e risk of the business has been an important issue for all commercial banks to solve.The object of this research is the risk management of the rural commercial bank. In this research factor analysis empirical research and comparative study is used, the concr ete manifestations as follows: firstly, As the research object of this rural commercial bank, which is composed of the rural credit cooperatives joint-stock restructuring and chang e, so the comparison before and after the reform of the management system and propert y right system is necessary; secondly, in this study, making the rural commercial bank as a whole, study the risk of the rural commercial. According to the theory of commercial bank risk, the index system that influence the commercial bank risk is put forward. Then the empirical mathematical analysis of samples of 51 banks is made based on factor an alysis model. In order to highlight the risk difference between commercial banks and ot her types of banks, 5 state-owned banks,4 joint-stock banks, 6 city commercial banks, 36 rural commercial banks is selected to analysis. Using the factor and mathematical anal ysis to reduce the dimension of the 11 indexes, extraction the main factor, analyzing the main factors affected the rural commercial bank risk. Finally, macro policies are given aimed at the major risk factor in the risk management.There are six chapters in this paper, the specific structure and content are an follows:The first chapter is the introduction, in this chapter the background and significanc e of this research is introduced briefly, the institutional changes of China Rural Credit C oorperatives is discussed. Then the ideas and methods of this research is introduces, co mparative research and empirical research are the research methods in this paper. At the same time, the innovation and disadvantages in this paper are also mentioned.In the second chapter, the theoretical basis and literature review of this paper are in troduced. In this paper, the basic theory includes the theory of property rights, institutio nal economics and finance risk theory and system theory. At last the research status for r ural commercial bank risk theory is discussed.The third chapter mainly introduces the institutional change process of China’s rura l commercial bank, the system in the form of rural credit cooperatives the formerly of ru ral commercial bank and the system of management of rural commercial bank are mainl y described, which can provide the premise for the following discussion of rick.The fourth chapter is the risk model about China rural commercial bank-factor analysis method. Due to the impact of the risk management of China’s rural commercial bank, there are many indicators, including the ratio of non-performing loans, the cost income ratio, loan deposit ratio, capital adequacy ratio, but because there are eleven indicators, the indexes is much more, each index could not be considered, so we by reducing the dimension of a series of finally selected 4 indicators to analyses the results.The fifth chapter is mainly to avoid if China’s rural commercial banks to risk countermeasures and suggestions. According to the empirical analysis results of the previous chapter, we combine the past experience of China’s rural commercial bank, comprehensively considering and giving a series of rural commercial bank risk avoidance policies and suggestions, including national macro policy and micro policy.