The Credit Risk Control Of The Rural Commercial Bank

Rural commercial bank is a form of financial institute reconstructed based on the original rural credit cooperatives,and its development is closely related to the development and reform process of rural credit cooperatives.For the rural commercial banks mainly serve farmers and small and medium enterprises in towns,whose credit status and credit rating are hard to accurately estimate,they are facing significant credit risk in farmers' loans.At present,however,both the state-owned commercial banks and the small and medium-sized joint-stock banks are found a rise in non-performing loan r ate by year and the amount of concern loans,and the potential credit risk c annot be ignored.The relatively weak comprehensive strength,small scale of assets,and the instable agricultural development of the joint-stock rural com mercial banks generate a prominent credit risk faced by the ruralcommercial banks in their own business operations,especially in the loan issuance proces s.Therefore,strengthening management of loan credit risk has also become a subject to which LX Rural Commercial Bank must pay attention.This paper first describes the background and significance of researching control over credit risk of LX Rural Commercial Bank,and makes an introduct ion on the basic situation of the case,mainly including analysis of reforms in history and credit assets status and focus on proportion of non-performing lo ans,asset size,financial revenue and expenditure indicators.Then it is follow ed by LX Rural Commercial Bank credit risk analysis.Through the summary of concern loans,sub-prime loans,suspicious loans,loss loans and other indicat orsin current non-performing loans of LX Rural Commercial Bank,problems fa cing LX Rural Commercial Bank at present on credit risk control and their ca uses are clearly showed.Finally,measures controlling credit risks are propose d as followings: to optimize the structure of credit personnel,strictly recruit,innovate training methods;take more measures simultaneously to strictly prev ent concern loans from transforming download non-performing loans;improvethe settlement of non-performing loans.To build a rural social credit system by taking country as basis and providing services for agriculture,farmer and countryside,dilute risks by the introduction of rural micro-credit system,agri cultural insurance and other policies;guard against credit risks by establishing financial credit information base database and applying a variety of credit ri sk quantification models etc.;strengthen the accountability system and improv e the supervision and evaluation system to strictly control the credit risks;pr omote construction of internal control in LX Rural Commercial Bank and pay great attention to information construction.