Research On Risk Control Of Agriculture-Related Loans Of C Rural Commercial Bank

Agriculture is Chinese basic industry and the foundation of the healthy development of the country's economy.China has a large rural population,a strong agricultural foundation and stable development.However,agriculture is greatly affected by the natural environment and has certain vulnerabilities.Therefore,the state attaches great importance to the development of agriculture.As early as the1950 s,in order to better assist the development of agriculture,China has set up a special rural credit cooperative,which is mainly devoted to the financial support of farmers in the production and cultivation.To this day,in order to better serve the‘three rural issues',the rural credit cooperatives are restructuring the rural commercial banks,and some areas of the country have already completed the restructuring.The rural commercial banks are the relevant farmers,industrial and commercial households and enterprises within the jurisdiction.The formation of a joint venture by legal persons and some other organizations is a regional local financial institution with a shareholding system.The formation of rural commercial banks represents a better support for agriculture,rural areas and farmers.The operation and support of rural commercial banks have been improved and reflected in all aspects.They have also played a more important role in helping regional economic development,making the development of regional economy more healthy and helping farmers to get rid of poverty and become rich.At the same time,however,the problems faced by rural commercial banks are more prominent.Due to historical reasons,the particularity of agriculture and their own problems,the non-performing loan ratio of rural commercial banks has remained high in recent years,and a large number of non-performing loans have been affected.The normal performance of its asset quality and its own role is also not conducive to thedevelopment of the local economy.In view of this,the prevention of future loan risks and the effective control of the historical non-performing loans have become the focus of rural commercial banks and the only way for their healthy and stable development in the future.Rural commercial banks play an irreplaceable role in the agricultural development,rural construction,and peasant enrichment in China,and are the most important rural financial institutions in China.Agricultural-related loans account for a large proportion of their total loans.Therefore,in order to effectively reduce the risk of loans,it is necessary to conduct more in-depth research on the risk control of agricultural loans.Agriculture-related loans refer to loans related to agricultural planting,production,processing and transportation.According to their different objects,agriculture-related loans can be divided into farmer loans,urban agriculture-related enterprises and organization loans,and rural agriculture-related enterprises and organizations..Agriculture has different characteristics from other industries,such as long agricultural production cycle,large investment,high risk,low income,and relatively backward rural financial environment construction,imperfect rural credit system construction,low farmers' cultural level and poor implementation awareness.The general scale of agriculture-related enterprises has not been able to form scale production,and these factors have made it more difficult to control the risk of agricultural loans.Only a deeper understanding of the status and problems of agriculture,rural areas,and peasants,and an in-depth study of the current situation and defects of rural commercial banks can be targeted to propose corresponding agricultural loan control measures,and build a risk prevention system for agricultural loans,and then effectively Reduce the risk of agricultural loans,as well as the overall loan risk of rural commercial banks.Therefore,the effective prevention and control of agriculture-related loans is the most important and important step for the overall risk control of rural banks.This paper introduces the status quo of agriculture-related loans of rural commercial banks in C,and analyzes the complete business process ofagriculture-related loans.It analyzes the current situation of risk management of rural commercial banks in C and points out its credit risk,natural risk and operational risk.Problems in policy risk and market risk management.Finally,the corresponding risk control system has been established from the perspectives of risk identification,risk assessment,risk response and risk control.The corresponding safeguard measures are proposed.The safeguard measures mainly include improving the organizational structure,improving the professional quality of employees,and fostering a healthy risk management culture..