Study On The Risk Precaution Of Credit In The Rural Credit Cooperatives Of Hengyang City

According to the statistics, the agricultural population accounts for 1/2 of the total in the country, so the focus of the domestic economic development is solving the issue of agriculture, rural areas and peasants, in addition, as the pillar of rural finance, rural credit cooperatives provides endlessly budget supporting for domestic rural area to promoting its economic development, furthermore, playing an important role in the process of new socialist countryside’construction and development. In recent years, with the continuous development, the domestic economic rural credit cooperatives have developed all sorts of product and service to sell in credit, however, in contrast with the other domestic commercial finance organizations, there are still many problems, such as lower level of the credit services as well as risk-control, seriously impeding the own development of sustaining and steady progression in domestic rural credit cooperatives. Consequently, dispersing risk effectually in domestic rural credit, on which cooperatives makes an effect, has a profound effect on domestic rural economic development.With actual situations of Hengyang RCCs credit risk prevention, primarily, the study elaborates the basis theories on the credit risk, which includes some basic concepts, rural finance theory, financial risk theory and financial innovation theory; and then analysis RCCs credit risk in Hengyang, after some descriptions of the current operations of rural credit cooperatives in Hengyang, doing some analysis on the origin of the credit risk with two aspects. Also, with comparative analysis of foreign risk prevention mode, he study put forward to suggestions improving risk prevention of RCCs credit in Hengyang, to promoting the development of rural credit cooperatives in Hengyang, finally, strengthening the following research of prevention of credit risk.