Research On Microfinance Risk Assessment And Its Prevention Strategy Of G Rural Commercial Bank

As one of the important businesses of Rural Commercial Banks,the risk level of microfinance business will directly affect the overall risk level of Rural Commercial Banks and even the overall risk level of Commercial Banks,and even further affect the overall economic operation of rural areas in China.Therefore,this paper believes that taking the microfinance risk of Rural Commercial Banks as the research object,study the current situation analysis,risk assessment and prevention strategies of microfinance risk of the specific Rural Commercial Bank cases,has important positive significance for each Rural Commercial Bank to grasp the overall risk level of microfinance business,and for the government regulatory department to grasp the overall credit risk status of Commercial Banks,And real-time grasp the economic development trend of rural areas in China.The main research content of this paper can be divided into three parts: Firstly,taking the current situation of microfinance business and risk assessment of G Rural Commercial Bank as the starting point,on the one hand,identifies the microfinance risk of G Rural Commercial Bank in detail and analyzes its risk causes.On the other hand,focuses on the problems existing in the current microfinance risk assessment system of G Rural Commercial Bank,and analyzes its causes.The results show that credit risk,moral hazard,operational risk,market risk and environmental risk are the main risks faced by G Rural Commercial Bank.At present,the main problems existing in the microfinance risk assessment system of G Rural Commercial Bank are that the assessment methods are difficult to adapt to the rapid growth of microfinance business,the operation process of risk assessment is not standardized,and the customer information registration is unreasonable.The main reasons are that G Rural Commercial Bank lacks a set of risk assessment system combining qualitative analysis and quantitative analysis,the customer manager’s willingness in risk assessment is not strong,and the professional level of risk assessment of employees is limited.Secondly,ten indicators are selected from the three aspects as the age,gender,educational level and marital status of the loan subject,the amount,term and purpose of this credit application,and the income and stock assets of the loan subject.Combined with the logistic regression analysis model to establish the microfinance risk assessment model of G Rural Commercial Bank.The application research result of the model shows that the prediction accuracy of the model for the default probability of microfinance loan subjects is 94.83%,which has strong applicability.Thirdly,based on the previous research,this paper also puts forward some targeted suggestions on the prevention strategies of microfinance risk of G Rural Commercial Bank,mainly including: improving the microfinance risk assessment system by improving the microfinance risk assessment method,optimizing the microfinance risk assessment process and perfecting the microfinance risk assessment system.Strengthen the execution of the microfinance risk assessment system by paying attention to the verification of pre loan information,strict approval management during loan and implementing post loan inspection and early warning.Strengthen the construction of professional talent team of microfinance business risk assessment by paying attention to the professional training and moral construction of relevant business personnel,improving the job rotation system of employees,optimizing the performance appraisal system of microfinance business personnel and cultivating the responsibility consciousness of credit business staff.Build and improve the guarantee system of microfinance business risk assessment by establishing a credit evaluation system in line with the characteristics of microfinance business,improving the database of microfinance customer information system and enhancing the power of other departments.On the one hand,the research results of this paper is useful to expand the application scope of microfinance risk assessment theory and provide new theoretical guidance for relevant research in this field.At the same time,it also helps to improve the relevant theoretical system and risk assessment method system of credit risk controlling of Rural Commercial Banks.On the other hand,through detailed risk assessment and targeted prevention strategy exploration,it can provide reference for the microfinance risk management of G Rural Commercial Bank and even the improvement of the overall credit risk management mechanism of G Rural Commercial Bank.At the same time,it can also provide case guidance for other Commercial Banks to regulate risks as much as possible in the process of carrying out microfinance business,and provide analytical basis for regulators to formulate regulatory policies.