Research On The Risk Management Of Micro Finance In Changshu Rural Commercial Bank

Microfinance is one of the rapidly growing financial businesses in the world in the past 30 years and has made significant contributions to eradicating poverty,solving the financing difficulties of small and medium-sized enterprises,promoting employment,and boosting economic growth.In 2005,with the support of the China Development Bank,Baoshang Bank launched the micro-credit project with micro-loans as the core and was the first commercial micro-credit project based on the principle of commercial sustainability implemented by commercial banks in China.With the in-depth operation of commercial banks,microfinance clients gradually expanded from farmers and individual industrial and commercial households to small and micro enterprises,and microfinance gradually shifted from rural finance aimed at poverty alleviation to commercial city finance for sustainable development change.In the meantime,in order to encourage commercial banks to provide financial services to small and micro enterprises,a series of supportive policies have been promulgated by the relevant state departments,which have made the development of the microfinance business prosperous.However,with the rapid development of microfinance business,risks are gradually exposed.Especially since 2012,due to the slowdown in macroeconomic growth,the non-performing rate of microfinance business has started to increase.The commercial banks' risk management needs to be strengthened.The development of microfinance business has brought good profits to commercial banks.At the same time,the methods and technologies of risk prevention and control of microfinance are in the exploratory stage,and no effective risk management process has been established yet.Since 2009,Changshu Rural Commercial Bank has been exploring the path of small and micro financial services.From the initial introduction of IPC technology to the current combination of IPC technology and credit factory mode,during the 9 years of development,Changshu Rural Commercial Bank also encountered bottlenecks in business development and the problems of risk prevention and control,as an early attempt to local micro-credit businesses in rural commercial banks,the bank's micro-credit business management has also undergone many adjustments and optimization,the current business process is representative.This paper selects Changshu Rural Commercial Bank as the research object,from the perspective of commercial banks,combing the relevant theories of microfinance risk management and process reengineering at home and abroad,combined with the practice of Changshu Rural Commercial Bank's microfinance business development,to re-examine the problems existing in the microfinance business process of Changshu Rural Commercial Bank,discussing the innovation of microfinance business risk management process and technology,and put forward suggestions for prevention and perfect countermeasures,hoping to promote the microfinance business from multiple perspectives to prevent the risk correctly and enable commercial banks and small and micro-customers to achieve a win-win situation in the credit development process.