Research On Credit Risks Management Of Huai'an JJC Rural Micro-loan Company

In recent years,micro-loan companies,with a differentiated financial service featuring “small-amount,diversification,flexibility and swiftness” helped those people in urgent need of small fund to some extent,effectively prevented the mess in private financing,suppressed the space of illegal usury,prompted the development of private financing in a healthy and orderly direction,promoted harmony and stability of our country's county economy.And at the same time micro-loan company itself also enjoyed rapid development and their unique advantages strengthening.Huai'an witnesses a prosperous growth of micro-loan companies.But in the mean time,these companies faces various bottlenecks restricting their development,such as imperfect laws and regulations,loose credit management,and inadequate credit risk management.Especially,the problem of credit risk management in micro-loan operation,aroused both academic and practical attention,is significant to micro-loan company's healthy and regulated development.As micro-loan company is ineligible to absorb public deposits and limited in capital,if without regulated and professional risk management,or even lack of basic risk management measures and awareness,micro-loan companies will step into hardships or even bankruptcy when the economic growth slows down.In that moment it will not only harm their investors' interests,but also cause possible financial and social unrest in the area.Recently,our country has entered the critical period of economic transformation,as the economic structure transforms and the economic growth slows down,micro-loan companies may encounter loan defaults on a greater scale.How to formulate and consummate a risk control system is the priority among priorities of micro-loan company's survival and development.This paper,based on the analysis of the present operation of Huai'an JCC Rural Micro-loan Company,expounds the importance of credit risk management to micro-loan companies by using the research on the risk of micro-loan companies of domestic and foreign scholars for reference,especially the research results on credit risk management.The paper sorts out the credit risks in the Company's business process and financial statements,dividing the credit risks faced by the Company into three types including macro risks,industry risks and the risks of the Company itself.And make the comparison and reach the advantages and disadvantages.According to the analysis of the Company's present situation and causes of the credit risks,this paper puts forward detailed countermeasures for strengthening the Company's credit risk management from three aspects,including optimizing the external environment,strengthening the internal management,perfecting the assessing and monitoring system,establishing and perfecting the internal control mechanism for the risks,and perfecting the credit risk assessment of the small and micro enterprises,providing the basis for the Company's risk classification,and laying the foundation for the construction of the Company's future credit risk management system.