Research On Risk Compensation Mechanism Of Poverty Alleviation Microfinance

In recent years,China has carried out a series of explorations and practices in financial poverty alleviation.As one of the important measures for financial poverty alleviation,microfinance has effectively solved the problems of difficult guarantee and expensive financing for poor households.This paper has read relevant literatures at home and abroad and obtained a large number of first-hand materials through field investigation.On this basis,it has adopted the method of combining qualitative and quantitative analysis to have a comprehensive and in-depth understanding of the current operation status of poverty alleviation microfinance and its risk compensation mechanism in X City.Departments and financial institutions for poverty alleviation in X city,under the promoting of anti-poverty microfinance quantity was the rapid growth of the poor areas in the geographical distribution of the quantity was significantly higher than that of the poor areas,has been in such bank middle peasants and institution is the main force of the business,accounting for half or more of the market share,for the poor rich production and business operation,business provides a strong support.At the same time,risk compensation mechanisms matching poverty alleviation microfinance have been set up and successively put into use in various counties(cities and districts)to compensate local bad debt losses caused by poverty alleviation microfinance according to policy requirements.In the actual investigation,it is found that the risk compensation mechanism of poverty alleviation microfinance in X city still has some deficiencies,such as the single credit rating means,subjective and one-sided credit rating,inadequate monitoring of the entire credit life cycle,and serious information asymmetry between Banks and poor households.As for the risk compensation mechanism,the current management measures do not provide specific conditions for the initiation of the risk compensation mechanism.There are no clear provisions on the application time,frequency and examination and approval time of the risk compensation fund,and there is no mandatory requirement for the poor households who have not actually repaid the loans to be included in the people’s Bank of China credit informationsystem.In the raising of risk compensation funds in various regions,there are problems such as single source of funds,late arrival of funds,different standards for loan magnification,and unclear minimum scale.As a result,it is difficult to deduct the full amount of risk compensation in time.In the risk control team,the manpower is relatively insufficient and the quality needs to be improved.This paper puts forward countermeasures to further improve the risk compensation mechanism of poverty alleviation microfinance in X City.Based on large data suggest that the government take the lead in building the risk identification of early warning mechanism,relieve the moral hazard caused by information asymmetry and adverse selection,refining standards and process risk compensation mechanism,expand the sources of risk compensation,to carry on the dynamic management,the risk compensation in anti-poverty microfinance between related departments establish normalized linkage mechanism,promote the electronic office platform,strengthen coordination department.In addition,we should vigorously introduce professional talents in the field of risk management to provide talent guarantee for the risk management of poverty alleviation microfinance.