Improve On The Bad Debt Reserve System Of The Rural Funding Cooperative Organizations

Bad debt reserve refers to financial firms to take risks and losses of the financial asset depreciation reserves.At first is for the sake of write-offs,later became the risk reserve fand.The role of the bad debt reserve by write-offs to resist financial risks,the bad debt reserve system is perfected step by step.Banks and other formal financial institutions,the bad debt reserve system is constantly improve and progress,play the positive role of preventing risks.At present,our country farmer capital mutual cooperation organization exists in two forms.One is in the China banking regulatory commission under the supervision of establishing formal financial organizations,the other is in rural formal financial supply spontaneous set up under the constraints of rural farmers capital support.This is a kind of informal financial organizations.In jiangsu province,belongs to the second case.The main business of this organization is mutual gold deposits and loans and settlement business.Size is bigger,stronger,in accordance with the requirements of the risk management theory and the theory of financial accounting,farmers money should have a support system of bad debt reserve.But jiangsu area farmers money is not a support class bank financial institutions.It can't completely according to the Banks of formal financial institutions of the bad debt reserve system for farmers capital support,only can draw lessons from the thinking of the bad debt reserve system to construct formal financial institutions to establish conforms to the characteristics of bad debt reserve system.Yancheng city in jiangsu province in order to strengthen the supervision and management of the farmers' capital support,guarantee the stable operation made the "measures for the supervision and management of a support of yancheng city farmers funds".Clearly put forward the way farmers money support should be careful management,build system of bad debt reserve,there are no other statement,imperfect.This paper will make evaluation on the current situation of yancheng district.On this basis,made for bad debt reserve system is perfect.Based on the theory of risk management and financial accounting theory,first studied the different institutions bad debt reserve system,on the basis of extracting the constituent elements of the bad debt reserve system.The author will be divided into the internal elements:A1:clear provision scope,scale and methods;A2:assets risk classification;A3:customer credit evaluation system;A4:the bad debt reserve management functions;A5:high quality financial and accounting personnel;And the external elements:B1:perfecting supervision mechanism;B2:management responsibilities clear divided into departments.Combined with the actual situation of yancheng city,jiangsu province,according to the elements make review on the status quo,and then established the applicability and usefulness of the system analysis framework.The author chooses 10 rural funding cooperative organizations in yancheng area as the research object,and a support first capital support to farmers to compare with the formal financial institutions,according to the characteristics of the farmers capital support,with the aid of formal financial institutions of the bad debt reserve system,established the farmers money bad debt reserve a support system,the system including the operating control level:scope of provision,the depreciation method,provision ratio control,full extraction,cancel after verification,separation of duties;Technical control aspects:mutual gold identification,credit rating;Regulatory control level:management department.Then described the situation of yancheng district,review farmers money whether has the above elements,a support and how to improve.Then from farmers money management Vernon,a support including the service object for membership,loan for unsecured loans,operating environment is influenced by many factors;Farmers money business cooperative,a support including cooperatives,mainly for business loan settlement business and service region characteristics;In line with the requirements of financial management;Comply with the marketization development from several aspects,such as the applicability of the bad debt reserve system for farmers capital support.Through the analysis of the risk of farmers money support type,improve the ability to resist risk,including overcome along the cyclical,improve capital adequacy ratio;Facilitate the management and supervision,including strengthen the capital management,improve the supervision strength,these two aspects analyzes the formation of high level management after the bad debt reserve system to establish the positive role of a support funding of farmers.And on this basis to farmers money put forward some Suggestions on the construction of a bad debt reserve system,a support for farmers money bad debt reserve system to build a support and fall to the ground with a realistic significance.