Research On Risk Management Of Microfinance In Rural Commercial Bank Of A City

The microcredit originated from the "GB" model of Bangladesh’s township banks in the 1960 s.It refers to small-scale financial services for urban and rural low-income groups,with the main aim of developing agriculture and eradicating poverty.China introduced the model in 1993.After these years of development,the microcredit business has made great progress and played a big role in promoting the development of individual industrial and commercial enterprises and the development of small enterprises and promoting the development of agriculture,rural areas and farmers.However,with the expansion of the scale,the risk of the microcredit business of Rural Commercial Bank of China is also increasing,hindering the sustained and healthy development of the bank’s microcredit business.So how to avoid,reduce and control these risks,become the main problem needed to solve for Rural Commercial Bank.This paper mainly identifies the risks in the microcredit business of Rural Commercial Bank in the city of A,and calculates the weight of each risk,gives the calculation method of risk value,and finally puts forward the countermeasures for the corresponding risk,to provide reference and reference for Rural Commercial Bank to strengthen the microcredit risk management.Firstly,we elaborate the background and significance of the research on the risk management of microfinance in Rural Commercial Bank,and summarize the current research situation at home and abroad,put forward the research contents and research methods.Then we introduce the basic theory and theoretical basis.Then we identify that there are five risks in the microcredit business of Rural Commercial Bank using risk-tree-search method.These five risks are credit risk,business risk,industry risk,interest rate risk and the operational risk.Next,we analyze the metrics and calculate the proportion of every risk using the analytic hierarchy process and the Delphi method,and explain how to get the risk value.Finally,for each risk,we put forward the corresponding countermeasures and suggestions to prevent and control the risk of microcredit.