Research On Rural Microfinance Risk Management Of Agricultural Bank Of China Suzhou Branch

The development of rural microfinance in China has a history of more than 20 years.At present,it has formed a good development situation which is supported by the central government,the financial management rules and regulations,and the extensive participation of financial institutions.Rural microfinance plays an important role in the development of rural economy and solving the problems of agriculture,rural areas and farmers.But in the implementation process of microfinance in rural areas,because of some financial institutions still exist serious defects in the specific organization and operation level,and agricultural production due to the particularity of the rural financial risks,the risk problem of rural microfinance has become increasingly prominent.At present,the branch of Agricultural Bank of China in the process of development of micro credit farmers failed to repay the default time,overdue rate and high non-performing rate,operational risk management problems.The existence of these risks restricts the healthy development of rural microfinance.This paper will take the Suzhou branch of the Agricultural Bank to carry out the management of rural micro credit risk as the center,analyze the current status and reasons for the development of micro credit from the micro level,put forward the solution and suggestions,this is where the significance of this article.This paper first review and summarizing literatures and research results,describes the main theory of the current rural microfinance,introduces the related concepts and theoretical basis of rural microfinance is a comprehensive risk management theory.According to the current business of Agricultural Bank of China Suzhou branch of rural microfinance although growth,but the bad and overdue loans increased year by year,the present situation of the risk exposure to speed up the Agricultural Bank of Suzhou that the current management of rural micro credit risk management system is not perfect,the business process becomes a mere formality,lack of internal control mechanism and risk management problems.Based on the analysis of the current situation,the risk management system is established,which is consistent with the Agricultural Bank of China in Suzhou.Finally,theory and Practice on strengthening the comprehensive risk management,innovation and rich micro credit products,to enhance the rural finance credit environment,strengthen the specific solutions and measures are put forward several aspects of talent team construction,so as to reduce the risk of occurrence,timely recovery of rural microfinance loans.This paper is helpful to strengthen the risk management of rural microfinance.