Research On Credit Risk Management About Rural Credit Unions In H-Country

As an important part of the banking and financial institutions,Rural Credit Unions(hereinafter referred to as RCU)is the main force of the rural financial market.the comprehensive development of the ‘Big Three'-Agriculture,Rural area and Farmer-could never make it without the strong economic support of RCU..However,during a long period,due to many historical limitations such as the backward management system,the rigescent operation mechanism and ineffective internal control management as well as many other factors,RCU has accumulated a certain degree of credit risk during its development.With the influence of the slowing down economy,this issue is becoming more and more urgent.Therefore,the risk management and supervision of its credit is getting great attention from the management,the government department and the financial regulatory organizations.Meanwhile,with the constant development of marketing economy and the recent higher regulatory requirements for the risk management and control of financial institutions,RCU has got more pressure to reflect on its own weaknesses from credit risk.Credit management is the core of the business development of RCU,and its quality is the direct determinant of RCU's operation and development.Therefore,an effective credit risk management and an improvement in credit loan operation are important guarantees for its sustainable development.As a result,such issues as credit risk prevention and alleviation and the improvement in the quality of credit funds are becoming important research subjects for RCU.Based on objective data and facts of the RCU in Z County,this article studies its credit risk management with relative credit risk management theories and methods along with qualitative and quantitative analyses.To begin with,this article provides an introduction to the current status of its credit risk management.Then,this article systematically analyses the existing problems during its credit risk control and management apart from the subjective and objective causes.Finally,this article suggests corresponding solutions to improve its credit risk management,which provides a clear guidance to its future credit risk management.In conclusion,only by scientific and efficient credit risk management and control can County Z achieve a sustainable and long lasting development.