The Research Of Microcredit Business Risk Prevention And Control

In the past four year of “The Twelfth National Economic and social development five year plan ”, the financial industry of China play a key role in domestic demand expanding, industrial transformation and balance development of city and countryside. Microcredit is one of the financial tools that banking institutions used to put resources significantly tilted to the rural services.Microcredit business which produced in Bangladesh, had provided loans to disadvantaged women and low-income groups, and made great achievements in supporting farmers. The China Postal Savings Bank Y branch described in this article has been running Microcredit business since 2008. Broad network coverage and implement actively in agriculture service, made the Microcredit became an important part of Y branch’s business assets. However, all kinds of risk became gathering, when Microcredit development reached a peak. How to analysis the risk status and find some causes of the non-performing loan, monitor and control risk, and find out effective action against risk will all be the main parts of this paper.This paper will firstly describe the history of risk control, credit risk related theory, and 5C credit evaluation method, and system analysis method in detail, and then introduce the development of the China Postal Savings Bank Y branch and its Microcredit business. Secondly analyze the typical cases of Y branch in Microcredit business and true financial data, identify all kinds of credit risk and risk management question, find out some reasons. Finally propose the risk prevention measures and the strategies, with the purpose of having positive effect to the Microcredit business of the China Postal Savings Bank Y bank.