Research On Rural Microfinance Risk Management In Jiangsu Province

China is a country with a large population of agriculture.The issue of agriculture,rural areas and farmers has always been the focus of our government’s work and is also a pain point that has plagued our government for many years.The party clearly stated in the report of the 19 th National Congress that the issue of "agriculture,rural areas and farmers" is a fundamental issue related to the national economy and people’s livelihood.It is not difficult to understand that if the issue of "three rural issues" can be properly resolved,it will greatly promote the development of China’s rural economy and thus promote the growth of the entire national economy.One of the main contradictions in the "three rural" issue is the slow increase in farmers’ income.As we all know,the income of farmers mainly comes from agricultural production activities,and the shortage of funds in agricultural production activities has become a widespread phenomenon.Therefore,to deal with the shortage of funds for farmers can solve the main contradiction of the "three rural" issue.Farmers’ micro-loans are an innovative model for providing financial support for farmers,which can effectively meet the financial needs of farmers in agricultural production activities.Through continuous exploration and practice at home and abroad,the small household loan of farmers as a product of financial innovation and poverty alleviation has effectively helped the majority of farmers solve the problem of fund shortage,thus increasing the income of the farmers.In a nutshell,small loans for farmers have played a positive role in promoting the development of rural economy in China.It is understood that the microfinance of rural households originated in Bangladesh in the 1970 s.The credit model established by University professor Muhammad Yunus of Bangladesh Grameen Bank(abbreviated as GB model)was popularized because of its great success.The early stage of the development of small loans for farmers in China was affected by the GB model.By reading a large number of documents,the author found that although scholars at home and abroad have conducted extensive research on microcredit for rural households,the author believes that these research perspectives are relatively messy and do not form a unified system.In addition,due to the differences in the national conditions of each country,the results of foreign research cannot be fully applied to the microcredit loans of rural households in China.Therefore,the author tries to supplement the deficiencies in the existing research on the basis of the predecessors,with a view to providing some ideas for solving the problem of the risk of microfinance for rural households in China.The author takes the small loans of rural households in Jiangsu as the research object,and the research methods used are mainly the induction method.At the same time,the analysis methods used include example method,data analysis method,and game model analysis.Through the above research methods,the author elaborates and analyzes the status quo of the small-sum loans of rural households in Jiangsu and the risk factors,and gives corresponding risk control measures on how to solve the risk of small-scale loans for rural households.In 2001,Jiangsu Province began an attempt to provide small loans to farmers,and did a lot of work on the exploration of small loans for farmers.By analyzing the development history of small-sum loans for rural households in Jiangsu Province,the author finds that small-scale loans for rural households have entered a period of rapid development since 2007,especially in 2009-2011.Through research on the provision of smallholder loans for rural households,rural commercial banks have played a major role.In addition to rural commercial banks,other providers of small-scale loans for rural households,such as small loan companies,have enjoyed a good momentum of development due to the support of the Jiangsu government.In reality,Jiangsu’s small-sum loans for rural households have gradually taken the lead in rural commercial banks,while other entities have provided diversified business operations.This kind of business operation model will help the healthy development of small loans for farmers.However,the author also found that the micro-loans of farmers have gradually exposed some problems during the practice process.The core of these problems is the risk factors of micro-loans for farmers.The author summarizes the risk factors into five categories,namely natural risks,market risk,credit risk,operational risk and policy risk.The author believes that the comparatively outstanding risk of microfinance for rural households is natural risk.It is easy to understand that the audience groups of microfinance for rural households are mainly engaged in agricultural production activities,and agriculture is greatly influenced by natural factors.Therefore,the author believes that if natural risks can be effectively controlled,then it will greatly promote the development of small loans for farmers.The author provides two countermeasures.First,the use of advanced high technology to enhance the vitality of crops and increase production;Second,the risk can be dispersed through the agricultural insurance mechanism.Of course,the author has elaborated and analyzed the five types of risks of small loans for rural households and provided corresponding risk management measures.