Research On Rural Microfinance Risk Assessment

Research on Risk Assessment of Model of Rural Micro-finance Rapid development of rural finance in our country,of which the development of micro-finance projects in rural areas is most prominent.The rural micro-finance project can not only alleviate the financial demand for rural economic development,but also help individual growers manage agriculture more effectively and promote the development of rural economy to a certain extent.However,the information asymmetry exists in the agricultural micro-finance market,seriously restricting the sustainable development of rural micro-finance projects.In our country,the development of farmer's personal credit system is not perfect.With the risk exists in agricultural industry,absence of awareness of farmer's credit,weak finance power,it is very difficult for MFIs to obtain accurate and comprehensive farmer's credit information in credit decision-making,which results in high risk.Traditionally,the credit rating method of farmers depend more on the expert experience method.This kind of credit evaluation method has shortcomings such as low efficiency,over-reliance of professors,fulling of subjectivity and lack of a uniform standard.Therefore,it is very important to develop a new and simple evaluation method for the credit risk of farmers so as to sustain the development of rural micro-finance projects in our country.In this paper,theoretical method combined with empirical analysis is used to express the theme.First of all,the analysis of the risk characteristics of customers in micro-finance projects,comes to the necessity of research on the credit evaluation system of farmers.It is clear that the credit evaluation method of farmers must be scientific,qualitative and quantitative,comprehensive and feasible.Therefore,the article selects 21 indicators of the farmers' credit evaluation system,and uses the analytic hierarchy process to determine the index weight.Thus,all work before forms the model of individual credit score of the farmers.In the practice of the model,it is conduct to be applied by Company A to assess credit of farmer.Moreover,the risk control of the company A was benefit from application of credit score model of farmers,and that shows the credit scoring model of farmers playing an active role in agricultural micro-finance risk warning system.At the end,the assay with Company A as an example,illustrates that credit institutions can successfully control risks not only depend on a gradual and complete credit evaluation system,but also need a perfect internal enterprise compliance,a safe business processes as well as the verification of farmers operating income and the entire rural credit System construction to work together to complete.