Research On Credit Risk Management Of Small Micro Enterprises Of M Rural Credit Union

The Rural Credit Cooperatives(RCC)is an essential part of China's rural financial system.It is operating at the countryside,serving the farmers,and concerned with China's agriculture,by increasing farmers' income,enhancing rural governance,and ensuring rural financial system.Nowadays,the economic demand of rural inhabitants is diversifying with the structural diversification of China's economy,as a result,the existing credit management,innovation and service can hardly meet the demand of sustainable development of agricultural economy.Therefore,we should put emphasis upon innovating RCC credit merchandise and controlling RCC credit risk,for the sake of developing agriculture,rural and farmers.This thesis treated the RCC of M city as the research sample,while looking into science of banking and science of management for theoretical basis,combining normative and empirical analysis for methodological adherence.Through qualitative analysis of the status quo,the cause and effect of current problems,and the risk-control methods of the small-and-micro-business credit service of RCC of M city,the thesis comes up with the suggestions for small-and-micro-business RCC credit optimization.The thesis has three parts.The first part discusses the significance and purpose of the agricultural credit given by RCC.In this part,the author clarifies the content and methods of this thesis by reviewing the bibliography home and abroad,and conducting a theoretical conclusion.The second part defines the small and micro business,features the small-and-micro-business credit risk,and introduces current paradigm of controlling this kind of risk,in order to put a solid foundation for next part.The third part is a micro-analysis demonstration in the context of M city.The risk control of its RCC credit given to the small and micro businesses has been surveyed.Firstly,the author outlines the RCC of M city,and explores the reality of RCC credit given to those small and micro businesses.Then,from an internal-control perspective into the RCC credit for small and micro businesses,the author analyzes its internal environment,its risk assessment and control system,and its internal supervision mechanism,and in further,poses the problems and their causes.Thereafter,the author gives the solutions to them,in a nutshell,which is about how to improve the risk control mechanism of RCC credit for small and micro businesses,with which both operational principal and sustainable principal agree.Solution 1.Establish scientific personnel-manage mechanism.Solution 2.Construct efficient internal control environment.Solution 3.Build up reliable credit assessment system.Solution 4.Set up reasonable risk control mechanism.Solution 5.Assure internal supervision and monitoring.Solution 6.Develop information system.Solution 7.Encourage innovation of credit service.In the end,the author concludes the development of RCC of M city.