Study On The Risk Management Optimization Of Small Loan For Farmers In Jinhua K Branch Of Agricultural Bank Of China

2020 is the critical stage of building a well-off society in an all-round way in China.It has become an important financial poverty alleviation policy to issue small amount of poverty alleviation credit to agricultural farmers at the grass-roots level.The policy of agriculture,rural areas and farmers has always been the focus of our party and government,and the Agricultural Bank of China is in the leading position in the financial institutions that provide financial services for agriculture,rural areas and farmers."Serving agriculture,rural areas and farmers" has become an important development direction of Agricultural Bank of China.All kinds of financial service programs related to agriculture,rural areas and farmers can find corresponding business in Agricultural Bank of China.Agricultural Bank of China has brought convenient and preferential financial services to the vast number of labor groups in the field of rural agriculture while its continuous development and expansion.In the field of helping rural agriculture,farmer micro loan is the most powerful support tool for banking financial institutions.However,due to its own characteristics,the non-performing risk of farmer micro loan is much higher than other loans in rural agriculture.With the continuous increase of agricultural assistance in Agricultural Bank of China,the scale of farmer micro loan is also expanding year by year.Accordingly,the agriculture faced by Agricultural Bank of China The risk of non-performing loans is also rising.The agricultural loan business often has the situation of insufficient mortgage or no mortgage,so the loan business developed in the agricultural field is different from the general mortgage credit loan.Generally,the agricultural loan has the characteristics of small amount,short loan time,no need of actual collateral,etc.in the face of rural farmers,this type of loan is farmers’ small loan.Because of the influence of the characteristics of rural agricultural loan objects,it is difficult for banks to collect complete and accurate credit information of farmers when developing small loans for farmers.Because of the lack of credit information,it is also difficult to audit the risk of small loans for farmers.Moreover,the small loan of farmers is different from the general personal loan or enterprise credit loan.The small loan of farmers is obviously affected by the local social credit climate,the overall operating environment or the natural environment.It is difficult to accurately identify,evaluate and control the risk if the small loan of farmers is evaluated by the credit risk rating method of ordinary loans.Although,in the process of the development of small loans for farmers,the loan scale of K branch of Agricultural Bank of China is increasing,which has made a lot of contributions to the development of agricultural and rural areas.At that time,with the continuous increase of the loan amount,the non-performing loans of small loans for farmers are also increasing rapidly.One of the reasons for this is that the bank focuses on expanding credit scale,but lacks scientific and effective credit risk management.Furthermore,the risk of small loans of farmers increases,which leads to a series of problems such as the rise of non-performing loan rate.In this case,focusing on the case of K branch of Agricultural Bank of China,this paper focuses on the problems related to the credit risk management of small loans from banks to farmers,and puts forward the corresponding improvement measures,in order to help the actual work.The main research methods are literature analysis,investigation and case analysis.Through the analysis of previous theoretical results,we found that there may be problems in the current risk management of farmers’ micro loans.Combined with the current situation of farmers’ micro loan risk management in Jinhua K branch of Agricultural Bank of China,we discussed the existing problems in Jinhua K branch of Agricultural Bank of China and designed the optimization scheme.This paper is mainly divided into five parts: the first part introduces the research background and significance of this paper,the current research results at home and abroad,the research content and research methods of this paper,and lays the research direction of this paper.To clarify the difficulties and pain points of bank financial institutions in the risk management of farmers’ micro loans,leading to the topic of risk management of farmers’ micro loans in Jinhua K branch of Agricultural Bank of China;secondly,to elaborate the related concepts and risk types of farmers’ micro loans,to understand the risk connotation of farmers’ micro loans.This paper expounds several related academic theories that are often encountered in the risk management of peasant household small loan,and understands the direction that peasant household small loan risk management needs to face;the third part combs the basic situation of peasant household small loan of K branch of Agricultural Bank of China,and summarizes the current situation and existing problems of peasant household small loan risk management of K branch.The fourth part,design and optimize the risk management ability of the loan object of ABC K sub branch,reduce the risk ability brought by the external environment and the risk brought by the internal operation,establish the regional risk evaluation system and strengthen the risk management ability of farmers’ micro loan of ABC Jinhua K sub branch through the data periodic analysis;the fifth part,summarize the whole paper.Small loan for farmers is an important part of Agricultural Bank of China’s agricultural loans,which is the embodiment of Agricultural Bank’s corporate social responsibility and an important development direction of its own development.There are complex internal and external reasons for the risk growth of farmers’ micro loans.How to reduce the risk management of small loans will help to reduce the non-performing risk of small loans.To reduce the non-performing risk of farmers’ micro loans will ensure the stable development of farmers’ micro loans.It is the general trend to promote the development of farmers’ micro loan business in an orderly way and give full play to the comprehensive function of farmers’ micro loan.It is also the necessary way to build a new socialist countryside and realize the modernization of rural areas,which requires the joint efforts of commercial banks,relevant governments and applicants for agricultural loans.