Study On The Risk Management Of Rural Loans In Taojiang Branch Of Rural Banks

At the 19 th national congress,the CPC Central Committee proposed "Rural Revitalization and targeted poverty alleviation",one of the three key strategic tasks of the party in the new century,and proposed to accelerate the development of rural economy and realize rural revitalization in an all-round way.As an important means of supporting rural economic development,agriculture related loans provide an important source of funds for expanding rural production,supporting the progress of agricultural science and technology and increasing farmers’ income.They are an important way to promote the implementation of the strategy of "Rural Revitalization".Village and town banks are new rural financial institutions set up at and below the county level to provide credit capital support and related financial services for the development of individual farmers,agriculture related and agriculture supporting enterprises and organizations.Agriculture related loan business is the most important loan business of rural banks,which accounts for a very high proportion of the total loan business,It is an important means for the state to provide policy support for the construction of a new socialist countryside through financial means.However,at the same time,rural banks have the characteristics of short business time,small scale,single business,high business regional concentration and weak capital strength.Therefore,their risk management ability is insufficient,especially the risk management of agriculture related loans.Agriculture related loans generally have the characteristics of short loan cycle,small single loan amount,short credit term,difficult risk prevention and control,difficult loan fund tracking,etc.in the economic downturn,its ability to deal with risks is relatively poor.Therefore,the risk management of agriculture related loans has become an important aspect restricting rural banks to improve asset quality and achieve better development.Starting with Taojiang branch of rural bank,this paper studies the development status,current situation,characteristics and problems of agricultural loan risk management of the bank,and puts forward targeted suggestions according to the existing problems,in order to systematically improve the risk management ability of agricultural loan of the bank.The paper consists of seven parts: the first part expounds the background and significance of this paper,points out the structure and research methods,and briefly introduces the relevant literature of domestic and foreign scholars on the risk management of rural bank agriculture related loans.The second part expounds the concept definition and basic theory related to the paper.The content of the concept definition includes rural banks,agriculture related loans and risk management,and points out the theories used in the research on agriculture related loan risk management in this paper,such as information asymmetry theory and agriculture related loan risk control theory.The third part analyzes the current situation and existing problems of agricultural loan risk management in Taojiang branch of rural bank.This paper analyzes the current situation of the bank’s risk management and the risk dilemma of agricultural loans from the current situation,characteristics,risk status and management measures taken to deal with the risk of agricultural loans in Taojiang branch of rural bank.The fourth part summarizes the problems existing in the risk management of agricultural loans in Taojiang branch of rural bank,and analyzes the deep-seated reasons behind the problems.It is found that although Taojiang branch of rural banks has taken a series of measures to deal with the risk of agriculture related loans and strengthened the risk management of agriculture related loans,there is still much room to improve its risk effectiveness,especially there is still a big gap with large commercial banks in risk identification,risk early warning and risk disposal.The main reasons for this phenomenon are the incomplete organizational structure of risk management,imperfect supervision,problems in the bank’s internal management,great influence by the external environment,and the relative lag in the construction of risk control talent team and the cultivation of risk control atmosphere.The fifth part introduces the risk management cases of Taojiang branch of rural bank in the process of agricultural loan business,which is mainly divided into risk identification,risk evaluation and risk prevention and control.The sixth part puts forward targeted solutions to the problems existing in the risk management of Taojiang branch of rural bank,mainly to build a scientific and comprehensive agricultural loan risk identification and evaluation system,innovate the means and methods of agricultural loan risk management,establish a sound agricultural credit risk control mechanism,promote the construction of credit investigation system in rural areas,strengthen the construction of risk control talent team and risk culture.The seventh part summarizes the research results of this paper.