Risk Management For Peasant Household Microfinancein Liao Zhong Rural Credit Cooperatives Case Research

Rural credit cooperatives, as the main force of rural finance, have made outstanding contributions by serving the "three rural" responsibility for agricultural production and farmers’ income and rural economic development for a long time. Microfinance business plays a decisive role as a specialized financial products and services to farmers, rural credit cooperatives in their own development and fulfill their social responsibility. Especially since the establishment of rural credit union, rural credit cooperatives "based agriculture, community-oriented, service urban and rural" market positioning, increasing credit efforts to enhance the level of support for agriculture, agro strength has markedly increased. The microcredit is an important reform of rural credit management system. After ten years of development, China’s rural credit cooperatives have been widely distributed in the rural towns and villages. It offers loans to small farmers, which also effectively solve the problem of anti-poverty funds to the rural poor, promoting self-development of poor households in the size and scope. And it has become the main force of microcredit. However, China’s rural credit cooperatives still has many problems in the process of implementing microfinance. Especially there are many shortcomings in microfinance risk management.Aiming at the difficulties and problems encountered during the period of issuing a loan since the service of small fiduciary loans to the peasants began in the rural cred it cooperative in Liaozhong County, the thesis makes an analysis of several typical cas es there, following the principle of “finding out a problem, analyzing a problem and s olving a problem”. Against the background of the cases of risk prevention concerning small fiduciary loans in the rural credit cooperative in Liaozhong County, the thesis p oses more relevant specific questions during the period of issuing small fiduciary loan s to the peasants in the rural credit cooperative, in the hope of providing experience an d guidance for practical work later. Facing the risks in the production environment, th e agricultural marketing sales environment, and even in the peasants borrowing loans, and the rural credit cooperative in Liaozhong County, the thesis makes a detailed stud y of the risk management of small fiduciary loans in the rural credit cooperative in Lia ozhong County. Through the study of relevant theories and the case analyses, a conclu sion is reached that it is a comprehensive and complicated job to prevent the risks whe n issuing small fiduciary loans to the peasants in Liaozhong County, and suggestions are given such as coordinating the relationship between parties, strengthening the man agement before and after the loan, effectively minimizing and preventing the risks of petty loans.