A Case Study On Risk Management Of A Credit Cooperative

Rural credit cooperative is the most important banking institution to promote rural economic development.As the mainstay of China's rural finance,the two thousand rural credit cooperatives provides more than 70%of the country's farmers loans and 30%of the agricultural loans,assume more than 98%of rural financial services and nearly 70%of the agency blank cover tasks.The global financial crisis show that we should pay more attention to the risk management of rural credit cooperatives.Hence,this paper took the risk management of A rural credit cooperative as the research object.This will do a lot to improve the risk management level of A rural credit cooperative and provide necessary references for the development of Chinese rural financial institutions.This paper guided by the theory of asymmetric information,according to the policy requirements of internal controls,Basel III and loan classification,believes that A RCC has some advantages such as many outlets,local authorities and pointed products,and it also seizes the opportunity of the state "three rural" support policy,cooperation with other financial institutions,and a substantial increase income of the local residents.However,there are still many problems in the process of credit risk control such as low credit asset quality,excessive concentration of credit,asseting credit risk subjectively and attaching great importance to the loan despise management.Therefore,In terms of optimizing the quality of credit assets,it is suggested to strengthen the communication with the government,issue common shares to improve the quality of capital,disposite existing non-performing loan reasonably.In terms of innovating credit financial service,it is suggested to establish the financial coordination center,provide insurance services to agricultural loans,conduct group lending business.In terms of building scientific credit risk identification,it is suggested to set up the peasant household credit files system,promote rural credit evaluation in towns and strengthen the key point of risk detection.In terms of strengthen the management of loan basis,it is suggested to strengthen post-loan continuous inspection,continue use incurred losses model and disclosure subjective information such as expected losses in the notes of financial statements at the same time for the loan,and improve the professional qualities of credit officers.