Research On Risk Management Of Medium-and Long-Term Policy-Based Loans Of W Sub-Branch Of Agricultural Development Bank

The Party’s 25 th National Congress stressed that "the most arduous and onerous task in comprehensively building a modern socialist country still rests in the rural areas." The No.1 document of the Central Committee pointed out that "we must make unremitting efforts to solve the problems of ’agriculture,rural areas and farmers’ as the top priority in the work of the whole Party." It fully reflects the Central Committee of the CPC attaches great importance to the work of "agriculture,rural areas and farmers" and the strategy of rural vitalization,which is highly consistent with the strategic positioning of "serving rural vitalization" of the Agricultural Development Bank.The steady development of high-quality Agricultural Development Bank is particularly important in serving the strategy of rural vitalization and increasing the supply of policy-based finance.As the Agricultural Development Bank only carries out public business rather than personal business,it is rarely known by the public.The academic circle also focuses on risk management in commercial banks and short-term working capital loans,and studies on medium-and long-term policy loans of policy banks are few.After the transformation,the Agricultural Development Bank is still on the road of business development.However,in the practice of the actual system and the operation of the new business,there is a clear deviation and weakness.In the face of the complex economic situation,under the requirement of serving to stabilize the economic market,compliance operation and comprehensive risk management are the key to development.In this paper,W branch of Agricultural Development Bank is taken as the research object.Under the support of comprehensive risk management theory,big data risk control theory,information asymmetry theory and credit risk measurement theory,firstly,by showing the changes in the loan structure of W branch of Agricultural Development Bank in four periods,it shows that the policy medium and long term loan has gradually evolved into the focus of loan business.Strengthening the risk management of policy-based medium-and long-term loans is the only way in the transition period.Secondly,this paper introduces the current risk management system of W branch of Agricultural Development Bank and the current risk management process operation of policy-based medium-and long-term loans,and uses the case analysis method to calculate and analyze the risk level of the whole process of loans.It is found that policy-based medium and long-term loans have the characteristics of large amount,long term,multiple variables and complex process,and the risk management of loans is relatively difficult.With the help of the real risk cases of pre-loan investigation,in-loan review and post-loan management of W branch of Agricultural Development Bank,the causes and control of risks are further analyzed.The problems were identified as weak risk awareness of business personnel,non-standard loan management,and improper behavior of loan customers.Finally,targeted optimization schemes were proposed,such as strengthening the review of key points of the process,strengthening the practice of the system,consolidating responsibility management,and improving the professional quality of personnel.In recent years,local financial pressure,urban investment bonds thundering,and loan extension frequently occur in various regions.However,the policy-based medium-and long-term loan lenders of W branch of Agricultural Development Bank are all local urban investment companies.Through investigation and interview with internal employees,it is found that in recent years,there are generally an increase in judicial cases,poor public opinion,tight capital for repayment of principal and interest,high debt and other phenomena.Although the policy-based medium and long-term loans of W Branch of Agricultural Bank of China have not gone bad at present,it is urgent to improve the risk management system,strengthen the "three lines of defense" of risk management and strictly implement the risk management system.It is expected that the research in this paper can improve the credit management level,credit asset quality and credit business level of W branch of Agricultural Bank of China.To provide reference for promoting its compliance and development,and continue to escort the development of the country’s "agriculture,rural areas" with healthy and high-quality credit assets.