Research On Microfinance Risk Management Of PA Bank Changsha Branch

With the outbreak of the global financial crisis in 2007-2008,more and more people are beginning to realize the risks in the modern economic environment.In fact,since the 1990 s,the international economic crisis has frequently erupted.People began to pay attention to the security of the financial environment,and strive to reduce risks,and the most important thing in the economic crisis is the financial crisis.As a core institution of the financial industry,commercial banks' main business,the risk of credit business,can have a huge impact on PA Bank Changsha Branch and the entire financial industry.With the rapid changes in the economic landscape,the development of individuals and enterprises is also facing a changing and complex environment.Due to the constraints of economy,technology and strength,many individuals and enterprises are facing difficulties in the process of development.Financing is not a top priority.At the same time,for individuals and small and micro enterprises,their business scope is relatively narrow.Although this is a defect,it is also a big advantage.When an unexpected event occurs in the external market environment,they can adjust the business trend in real time,thus succeeding.avoid risk.However,its own lack of funds and other defects,so that it can not operate a wide range of products to spread risk,nor can mass production of products to compete with large enterprises.Therefore,in the development of sub-markets,individuals and small and micro enterprises are more and more inclined to subdivide the trend of operations,and this business philosophy and model also meet the development needs of the market.Among them,small and micro enterprises have weak financing,poor fundraising ability,and working capital accounts for a relatively high total cost.Their sources of funds,mainly provided by commercial banks,not only need to pay high interest rates,but also need to face the risk of withdrawal of banks at all times.Therefore,on the basis of this lack of abundant self-owned funds,Chinese individuals and small and micro enterprises are generally weak in their ability to resist risks.According to statistics,the rejection rate of small and micro enterprises in China's commercial banks has reached 56%.At present,due to the growing coverage of microfinance business and the lack of risk management experience,banks will encounter various problems in the process of conducting microfinance business.The most frequently encountered and most representative problems in the process of developing microfinance scale are: for example,the microfinance business of commercial banks has problems of non-performing loan scale and high non-performing rate;Identifying insufficient issues;risk awareness is weak,risk control is in the form of problems;risk management system is not sound.The inadequacies of microfinance risk management in commercial banks are also common in the PA Bank Changsha Branch.Compared with other financial platforms,PA Bank has its own advantages.With these advantages as the cornerstone,its development has also shown a smooth sailing situation.In the complex external economic environment,it represents the development direction of Internet finance,for more.The loan group provides loan services that meet their actual needs.This paper studies the source and type of microfinance risk of PA Bank Changsha Branch with the example of PA Bank Changsha.It also finds that there are problems in microfinance risk management of PA Bank Changsha Branch: the scale of non-performing loans and the high non-performing rate,risk management organization The structure is imperfect,the risk management system is not well established,the risk management incentive mechanism is imperfect,and the risk management control method is not scientific.This paper gives relevant optimization suggestions for the existing problems,including: strengthening the risk management system construction,improving the risk control business process,optimizing the risk management organizational structure,optimizing the credit risk control method and strengthening the reward and punishment of non-performing loan collection.