A Credit Risk Research Of RongXiang Microfinance Company In Zhuanghe City Liaoning Province

With the further reform of our financial system and the continuous innovation advancing the financial system, small loan companies as a new product of China’s financial markets in recent years, in various regions of China, are emerging and springing up very rapidly and quickly. The rise of small loan companies is complementing our financial system’s "capillary ", regulating the messy situation of private lending, and furthermore promoting the coordinated development of urban and rural economy. However, behind the rapid development, small loan companies face all kinds of hidden risks. Credit risk as the risk of penetration in the small loan company’s overall business process, seems to have become one of the biggest challenges faced by small loan companies. For small loan companies, how to discipline and effectively identify, analyze and prevent credit risk has a significant impact on their survival and development. So, working on the credit risk of small loan companies, undoubtedly has important and far-reaching theoretical significance.The article firstly reviews the establishment of microfinance companies at home and abroad, taking the latest results of research in microfinance and the related fields, together with related theories of risk identification and management of modem financial enterprise as the main theoretical foundation, which summarizes the theories and concepts of microfinance companies, and sorts the credit risk of microfinance companies. Then, the article takes Rongxiang microfinance company in Zhuanghe City, Liaoning Province as a specific case to study. Through a comprehensive analysis of the operation and development status of the company, the article makes the point that we should identify and classify the credit risk facing the company from the perspective of "liquidity" and analyze the causes of any credit risk we recognize according to the the flow direction and the characteristics of money in the company’s various business links. Finally, according to the causes of each risk, basing on the actual situation of Rongxiang microfinance company, the article suggests targeted prevention and treatment of various types of credit risks.