Research On Risk Prevention And Control Of Rural Credit Union' Small Loans

With the implementation of the rural revitalizationg strategy and the promotion of the construction of beautiful countryside,the financial demand has been expanding in rural areas,especially the credit product for supporting farmers.In order to help the rural revitalization strategy,the rural credit cooperatives take the initiative to take the lead in finance,actively take on social responsibilities,increase credit support in rural areas,vigorously invest small loans to farmers,and obtain good social and economic benefits.As a credit product for supporting farmers,microcredit for farmers has played an important and active role in solving farmers' financial difficulties,supporting rural economic development,and promoting farmers' income and prosperity,and has been generally welcomed by farmers.However,under the background of economic and credit downturn,at the same time,due to the factors such as the wide range of farmers' small loans,the uncertainty of agricultural production,and the asymmetry of information on both sides,the risks of farmers' small loans are gradually exposed,and the NPL ratio is increasing year by year.This article does the research on rural credit union in the city of F,and starts from the relevant theories on the identification,evaluation,and prevention and control of rural households' micro-credit risks.From theory to practice,it gradually completes the research on the rural credit cooperatives' micro-credit risks identification and prevention.First,this article introduces the concept definition and theoretical basis,including the concepts of microfinance for farmers,the concept of credit risk,information asymmetry,lack of inner management,risk prevention and control.Second,through research,comprehensively grasps the basis of the current situation of microcredit for farmers in rural credit union in the city of F.Based on which,the possible risks are identified,including natural risks,credit risks,operational risks,market risks,etc,and the main reasons are analyzed.Third,an evaluation model is established to evaluate the impact of the risk factors of small loans to farmers,meanwhile comparing with other banks in the interbank market in risk prevention and control.Last but not least,based on the analysis of the causes of farmers' small loan risk and the risk influencing factors,this article proposed joint control plans to purify the social credit environment,build a good credit culture,focus on risk prevention and control in the credit field,and improve external security mechanisms.This article mainly draws the following three research conclusions:First,under the background of the implementation of rural rejuvenation,the agricultural industry in the city of F has a solid foundation,and farmers' demand for microfinance continues to increase.The development provided a good industrial environment for the microfinance business of the Rural Credit union.Second,the causes of small loan risks for rural households in the city of F rural credit cooperatives are mainly the weak farmers' credit awareness,low quality of customer manager teams,inaccurate credit ratings of farmers,mismatched loan terms and production cycles,unreasonable guarantee structure,and implementation of internal control are not in place,credit culture has not been effectively restored,etc.Third,credit risk is the main risk of small loans for farmers in the city of F.Among the influencing factors of various risks,factors such as the household members' insurance status,the borrower's credit status,the quality of employees and compliance awareness,the market prospects of agricultural products,and other factors have a greater impact on the risk of small loans to farmers,which should be focused during risk control process.