SW Rural Bank Personal Loan Credit Risk Analysis

Rural Banks are key pilot units of banking institutional innovation,and have entered the fast track of development since 2007.Relying on the existing banking financial institutions,the rural banks combine the operation methods of small loan companies and banks.They have the advantages of flexible mechanism and rapid decision-making.They have significantly optimized the problems of insufficient competitiveness and lack of supply in the domestic rural financial industry,and played an important role in coping with the difficulties and expensive financing in the domestic rural areas and realizing rural revitalization.After more than 15 years of development,the number of outlets of rural banks in the country has been increasing,and the problems to be solved have also gradually increased.Due to the lack of intermediary business,the main profit source of rural banks is the interest difference between deposits and loans.Since 2019,the impact of COVID-19 has accelerated China’s economic downturn,the internal and external business environment of commercial banks has changed,and the asset quality is facing downward pressure.The registered capital of rural banks is less,and the ability to dilute risks is also weaker,especially the loan risk.From the perspective of long-term development,the first problem that village banks need to solve is how to effectively manage and control the credit risk of loans.Grey system theory has been successfully applied in the field of economic management.It is suitable for system analysis and modeling based on small samples and poor information data.In order to prevent and manage the credit risk of rural bank loans,this paper uses the loan data of SW rural bank,an independent legal entity,to analyze the factors affecting the credit risk of personal loans by using the gray correlation analysis method,and then analyzes the case of SW rural bank to analyze,evaluate and deal with the existing problems.SW rural bank is a merger and acquisition Bank of XX rural bank,and also a rural bank with nearly 10 years of operation history.Taking SW rural bank as an example,this paper creatively analyzes the causes of personal loan credit risk from the perspective of personal loan credit risk,and puts forward countermeasures and suggestions,with a view to providing reasonable reference for the sustainable development of the same type of enterprises.