Study On Risk Management Of Pizhou Forestry Property Micro Circulation Loans

With deep reform of forest-right system, forestry operators’ enthusiasm gets motivated and the development of forestry economic is promoted. The expansions of forestry makes forestry operators’demand for capital also increase. The presence of the forestry property mortgage makes forestry operators increase financing ways to see the hope. It presents a new practice mode, which implements innovation of financial service and becomes the important way to activate the forestry resources and promote the development of forestry investment and financing.As "the national forestry industry first county" and "the hometown of ginkgo", Pizhou city has Ginkgo Lin piece area of about 280000 mu. Pizhou city is the largest ginkgo seedling breeding, ginkgo standardized production and YinXingTong production base. With the expansion of the ginkgo industry scale and the adjustment of industrial structure, ginkgo operators’ credit demand also increase. However, due to ginkgo operators’ long-time decentralized operation, accumulation of capital is less, effective assets and collateral are short. So the issues such as "Loans difficult", "Difficult to guarantee" and "Loans expensive" have become the biggest obstacle to expand ginkgo operators’ reproduction. In addition, Ginkgo industry has great differences from other industries, such as the expensive price, the long growth cycle, the big capital demand, the slow capital turnover and the high natural risk, all these characteristics make it a high-risk industry. So the supervision of ginkgo assets in the mortgage has considerable differences to others. Besides, as the main body of the financial system, bank’s credit risk will not only affect themselves, it will also affect a country’s economy and sustainable development. It will be also likely to have a profound impact on the development of society. Therefore, it has the vital significance to explore the operation mode and risk management of Pizhou forestry property mortgage.On the basis of sorting out the related the domestic and foreign literature and policy of operation mode and risk management of forestry property mortgage, combing with information asymmetry, property and risk management theory, taking Pizhou ginkgo for example, the paper explores forestry property micro circulation loans operation mode and analyzes the risk of this mode which is in accordance with local characteristics. Finally, the paper establishes the risk prevention measures of forestry property micro circulation loans from two aspects of financial institutions and government. So forestry property micro circulation loans can operate under the environment of low risk.