Research On The Credit Risk Management Of K City National Village Bank

At the end of 2006,After the China Banking Insurance Regulatory Commission issued several opinions on relaxing the access policies of financial institutions in rural areas,It also issued the Interim Provisions on the Management of Village Banks.This is a programmatic document for the development of village banks.With the establishment of the first Village bank in China,Sichuan Yilong Huimin Village Bank,Began the prelude to the rapid development of Village banks.The target customer groups of village banks are farmers,small and micro enterprises,and individual industrial and commercial households.Most of these clients have a single source of income.Financial opacity,Fewer items available for collateral,The problem of asymmetric information is more obvious,and it is also the frontier echelon that has been affected by the latest risk crisis.In addition,China’s agricultural infrastructure is lagging behind,and agricultural risk sharing mechanisms and risk pass-through operations are poor.Especially for the less developed regions in the west,the disadvantages faced by village banks are more serious.As a result,the credit risk of village banks is generally higher than other types of financial institutions,and the task of managing credit risk of village banks is arduous.This article takes K City’s Village Bank as the research object,and conducts field surveys of village banks to investigate and understand the situation with the financial industry supervision and management department.Discover the risk forms and major problems in credit risk management,analyze the problems in depth,and combine the existing research results of credit risk management theory,Make full use of the good models and experience of domestic and foreign village banks and small loan models,and put forward policy recommendations for doing a good job of credit risk management of village and town banks in K City.Provide a reference for the prevention of credit risks.At the same time,The risk performance forms of the village bank in city K include the downward migration risk of loan quality,the concentration risk of loans,and operational risks.And the lack of risk management system in the risk management,the inadequate management of the loan risk process,and the deficiency of system functions and insufficient support,The same is true for other village banks,In response to these risks and problems,suggestions for the prevention and control of credit risks were made.It is also applicable to other Village banks in the less developed regions of the west.The thesis is divided into 7 parts.Introductions,The foundation and concept of village bank and credit risk management,The credit business and risk status of the Village Bank of K City,Management status,There are major problems,Lessons from risk management methods of village banks at home and abroad,policy and suggestion,Research conclusions and prospects.