Rural Financial Credit Risk Analysis And Derivatives Design And Pricing

With the increasing prosperity of rural economy,the acceleration of urban-rural integration and the continuous optimization of rural productive structure,farmers have a great demand for fund due to the production.The main borrowers of rural fi-nancial institutions are farmers,but the rural financial institutions know little about the basic information of them,which leads to many risks in rural financial credit activities.Therefore,the essential problems we are facing are to fully understand the credit risk of rural finance,to establish an effective risk prevention mechanism,to disperse and reduce credit risk,to improve the quality and utilization rate of loan funds,and to truly realize the sustainable development of rural finance.The purpose of this paper is to fully learn and draw lessons from advanced credit risk management technologies and models at home and abroad,and to grad-ually form credit risk measurement and management technologies suitable for rural finance in China,so as to comprehensively enhance the level of rural credit risk management and improve the rural financial environment from the two dimensions of Technology and means.Based on the theory of venture management and the method of combining theoretical analysis with empirical research,this paper anal-yses many problems existing in rural finance in China,such as imperfect credit management process,backward credit risk quantification tools,lack of high-quality credit risk management team,etc.According to the Credit Risk Management Sys-tem of commercial banks,the writer constructs a rural credit risk management system,including probability of default estimate,the tolerance of credit risks and derivatives design,etc.,to establish effective risk prevention measures in order to spread and reduce credit risk.Based on the analysis of credit risk in rural finance and the corresponding measures and methods,this paper chooses the relevant information of farmers,con-structs the Credit Risk Rating System of farmers,calculates the default probability of farmers through the logistic regression analysis method,designs corresponding derivatives,sets the derivatives pricing,and applies them to the credit risk manage-ment of rural finance.The paper has certain practical significance.The content of the paper is introduced in detail.