Study On The Risk Management Of Rural Credit Cooperatives In Shandong Province

After the Reform and Opening up,China's steady economic development has supporting the financial system gradually improving.However,the process of rural economic development has long been faced with the problem of lack of financial system.To improve the economic situation of China's vast rural areas has become the key for development.In recent years,Chinese government has increased efforts to support rural economic development,and relax the regulation for rural financial in order to promote economic development in rural areas.New rural small financial institutions,such as rural credit cooperatives and rural banks,have sprung up,making up the five big state-owned commercial Banks' s in the rural areas of service gap and expanding dislocation competition with the five big state-owned commercial banks.The new rural small financial institutions and the five big state-owned commercial banks has jointly promoted the economic development of rural areas.In all of this,the rural credit cooperatives have been the main force of rural microfinance,effectively alleviate the rural loan difficult problem,and curb the spread of folk loan sharks.Microfinance as a feature of rural credit cooperatives,although has the policy support,it also faces a number of challenges,particularly unsecured credit risk control model.It is necessary to break through these problems.In this paper,we have taken the rural credit cooperatives in Shandong Province as an example to analyze the risks faced by microfinance.We used AHP constructed in microfinance risk evaluation system.In order to discover the rural credit cooperatives in Shandong Province in microfinance risk management issues,and trying to highlight the scientific and rational risk management recommendations.Through the rural credit cooperatives in Shandong Province source of risk analysis,we found the risks include natural risk,credit risk,operational risk and market risk.In this paper Analytic Hierarchy Process are constructed for the rural credit cooperatives in Shandong Province's credit risk evaluation system so that it can carry out effective risk prevention to reduce non-compliance in carrying out the Microfinance Business Process risk.The innovation of this paper is set up a Micro-credit Risk Evaluation Index of Rural Credit Cooperatives in Shandong Province.using the method of analytic hierarchy process,this paper evaluated the credit of the applicant for microcredit.