Research On Risk Management Of Microfinance In Rural Banks In China

As a backbone of the new types of rural financial institutions,business model of rural banks are still not perfect.Risk of financial management has increasingly become the significant problems and could not be ignored as the wide range of spread and the innovation of financial rural finance.Microfinance,a characteristic financial services of rural bank,is easily influenced by policies.After years of development,to some extent,it eased the problems of farmers’ demand for loans and achieved considerable social and economic benefits.It played as an irreplaceable role to the farmers and the development of financial services in rural areas.However,under the gradual institutionalization of the microfinance business,current distribution of microfinance,such as rural banks;,found that it is hard to get a good balance between risk and return.It driven rural banks to spend most of the money no township enterprises and cities,which can rarely meet the needs of individual farmers.Credit risk problem has become the key to rural Bank development and rural financial services.Therefore,the analyzing of causes of rural microfinance bank,exploring the scientific method of prevention and control of village.Bank risk has important significance in realizing sustainable development of rural bank micro-credit.In view of this,firstly,I studied the theory of credit risk related to credit risk management procedures and introduced some micro-credit risk control technique.Then,I recalled China rural Bank and small credit of development course and given a study on the small credit of China rural bank.By the analyze combined qualitative and quantitative,empirical and specification and macro and micro phase,an index system of factors influencing the village bank micro-credit was established,which including five general categories,features of loan people,personal reputation,business capacity,debt capacity and loan situation and 17 index variables.From the success of international model of rural micro-credit and the condition of China,this paper advance several strategies in the view of government,rural banks and framers to reduce credit risk and improve the sustainability of rural finance.