Research On Financial Risk Management Of Rural Credit Cooperatives In HZ City

Rural credit cooperative (hereinafter referred to as RCC) is the most basic of Chinese rural financial organization. In China, rural credit supply more than 80%is provided by rural credit cooperatives, if the rural credit cooperatives in systemic financial risk, the impact on economic development in rural China would be fatal. At present, China's rural credit cooperatives financial risk mainly credit risk, but with the full liberalization of the national deposit and lending interest rate controls, the implementation of interest rate market, the gradual liberalization of financial markets and a series of policies to take root, the Rural Credit Market risk will gradually increase. In addition, operational risk, liquidity risk is gradually increasing. Therefore, as soon as possible in accordance with the requirements of the new Basel Capital Accord, to build China's rural credit cooperatives comprehensive risk management model which suitable for China's national condition,and overall management of all risk types, quantify the risk, and then carry out a comprehensive risk management is imminent.Based on this, the thesis on the basis of HZ Rural Credit Cooperatives present Financial Risk Situation and Causes of Financial Risk Analysis, the focus was constructed HZ Rural credit cooperatives financial risk measurement model which is based on multi-level G-weighted index and use the constructed model, measuring the degree of financial risk hazard HZ rural credit cooperatives exists. Further, targeted constructed HZ rural Credit Cooperative financial risk management system, and proposed safeguards to implement HZ rural Credit Cooperative financial risk management system. The main work is as follows:(1) Construction of the HZ Rural Credit Cooperative Financial Risk Measurement Model. Based on the Multi-level G-weighted index model, combined with HZ Rural credit cooperatives operating conditions, regional economic and financial environment, financial markets and others, together determine the HZ Rural credit cooperatives financial risk measure index, establish the index's evaluation criteria and determine the weight of each index based on AHP method, finally establish the eventual HZ rural Credit Cooperatives financial risk measurement models.(2) The HZ rural credit cooperatives potential risks were measured by using the models constructed above, measurement results were as follows:HZ rural credit cooperatives non-performing loans continued to rise, overdue than bad ratio is high, hidden credit risk continue to increase; deposit presentation of current, long-term loans of exhibits, loan maturity mismatch serious, potentially liquidity risk is increasing;(3) Construction of the HZ Rural Credit Cooperative Financial risk management system. Based on the analysis and measures of HZ Rural Credit Cooperative Financial risk, proposed HZ Rural Credit Cooperative Financial risk management system, including HZ Rural Credit Cooperative Financial risk management mechanisms, risk management items, risk reporting and the specific programs of risk management procedures. Meanwhile, to ensure the implementation of the above-mentioned effects of the financial risk management system, from the external environment and internal environment both, proposed safeguards methods for the implement of the HZ Rural Credit Cooperative Financial risk management system.Features and innovations of the paper:(1) The study is new. Although scholars have a lot of research on the local financial corporate risk management of financial institutions, but mostly based on the credit risk management, current research towards HZ Rural Credit Cooperatives overall financial risk management is rarely. Taking HZ Rural Credit Cooperative as the research object, using a more comprehensive analysis and measure for the financial risks, and proposed some risk management measures, with a reference value for financial risk management of HZ rural credit cooperatives.(2) The research method is new. The use of multi-level G-weighted index, to measure the HZ rural credit cooperatives city financial risk measure is a highlight of this paper, the researchers were mainly from the theoretical analysis of the rural credit cooperatives financial risk compared to the past, this method can be more effectively measure the extent of rural credit cooperatives financial potential risks, and the risk management plan based on above is more scientific and targeted.