Research On Risk Management Of Huinong Loan Of Agricultural Bank Of China LC Sub-Branch

The central government has always entrusted the Agricultural Bank of China with the responsibility of providing services to agriculture,rural areas,and farmers,and it has faithfully implemented this position.The Agricultural Bank of China’s LC branch has a mission to serve rural revitalization,agriculture,rural areas,and farmers,adapting to the varying economic conditions of the agricultural and rural economies,and devising sensible farmer loan policies and regulations.LC Sub-branch,taking into account the classic case experience of "Huinong e-loan" in China and its relevant theories and research,has created a new business card to facilitate efficient service to agricultural,rural areas,in order to adjust to market development and customer demand changes.Realizing the sustainable development of the LC Sub-branch’s"Huinong e-loan" business,farmers in the new era can be aided in enhancing their capital and labor capacity,as well as significantly augmenting the increment,expansion,quality,and efficiency of productive and operational loan services.Risk management issues have become more and more prominent as the scope of online credit scale has grown..How to build a risk prevention and control system for Huinong loans has become an important issue for LC Sub-branch.The research object of this paper is the risk management of Huinong loan from Agricultural Bank of China LC Sub-branch,and the questionnaire survey method,analytic hierarchy process,and fuzzy comprehensive evaluation method are employed to execute it.Initially,the theoretical basis of Huinong loan risk management is summarized,with the concepts and basic theories being expounded upon.Subsequently,the current state of the Huinong loan business of the LC Sub-branch,the basic situation of the Agricultural Bank of China’s LC Sub-branch,the Huinong loan business,and the Huinong loan risk mana are all analyzed.We shall assess the credit,operational,and liquidity risks of the Agricultural Bank of China(ABC)LC Sub-branch Huinong,and then analyze the causes of the loan risk through the evaluation results.The pre-loan,mid-loan,and post-loan risk evaluation scores for the current loan risk of LC Sub-branch Huinong are 3.411,3.104,and 2.915 respectively.Between pre-and mid-loan risk lies a range of significant and general risk,while post-loan risk is between general and significant.It can be determined that the project has large risk.The post-loan risk evaluation score is the lowest,indicating that in the later stage of the loan,with the improvement of the preliminary work,the post-loan risk gradually decreases.From the fuzzy comprehensive evaluation results,it can be concluded that the risk evaluation results of the agricultural bank of China’s LC branch’s Huinong loan are based on the relationship between significant risk and major risk,which indicates that there is a large risk in the LC branch’s Huinong loan.The research’s alteration will cause the loan situation to alter during the project loan process,a fact that is not hard to discern.This paper proposes an idea and plan to optimize the risk management of Huinong loans from the Agricultural Bank of China LC Branch,with a view to providing reference for the same Branch to enhance their risk management.To guarantee the successful execution of the optimization plan,safeguard measures and suggestions are also proposed.