Analysis On Countermeasures Of Credit Risk Of Xintai Microfinance Corporations

Since the introduction of the microfinance company model in 2005,the status of microfinance companies in the financial system has continued to rise,reflecting the important role played by local economic development.The microfinance industry has also grown rapidly,and the number of microfinance companies has increased dramatically.Increased,but the quality of these small loan companies is mixed.Some small loan companies attach great importance to profitability far more than the degree of emphasis on risk management,leading to an increase in bad debt ratios and endangering the safety of the financial system.Most of these small loan companies started later,for credit.There is a shortage of risk management practices,and there are many problems in credit risk management.There is a large gap between the level of credit risk management of foreign microfinance companies.This article uses Xingtai Micro-credit Company as a case study object,adopts multiple analysis methods,puts forward problems in the management of credit risk management in light of the actual risk management of Xingtai Small Loans,explores the causes of these issues,and then proposes solutions based on related theories and policies.Countermeasures and suggestions.First of all,through the description of the relevant theory of credit risk,the concept of microfinance risk is defined.Then,in conjunction with the various operating indicators of Xingtai Microfinance Company in the past three years,the status of risk management of Xingtai Microfinance,the existing problems,and the causes of the problems were analyzed.Finally,it puts forward appropriate countermeasures and suggestions for the credit risk management of the various aspects of Xingtai Microfinance.Through the study of this paper,it is found that Xingtai Microfinance Company has many management problems in credit risk management.The loan structure is single,the quality of collateral is uneven,excess lending causes cash flow deficiency,the loan interest rate is unreasonable,and profitability is affected.Limits and more.This paper believes that Xingtai Microfinance Company should strengthen credit management to improve asset quality;build a personal credit scoring system to maintain a reasonable level of liquidity;increase funding channels,reasonably increase lending rates,improve profitability;improve internal management and clarify the various departments Responsibilities:Establish an electronic office system,enhance work efficiency,closely follow post-loan work,and enhance the ability to respond to market risks;reasonably control operating costs and improve the competitiveness of enterprises.The study of credit risk management through the combination of theoretical knowledge and the practice of Xingtai Microcredit Company can help Xingtai Small Loan Company to control the credit risk to a certain extent,thereby improving the credit risk management of Xingtai Microfinance Company.Effectively enhance comprehensive competitiveness and provide reference for risk management of other small loan companies.