How to Strengthen Credit Risk Management of Rural Credit Cooperatives [Management Issues] About 2270 words in Xu Hongwei With the rapid development of credit business of rural credit cooperatives, loans have grown rapidly, which has strongly supported the development of county economy and enhanced the profitability of enterprises. However, the credit risk is becoming more and more obvious, and the number of non-performing credit assets and the ratio of non-performing assets are also rising linearly. How to strengthen credit risk management and effectively prevent and resolve credit risks has become the top priority of rural credit cooperatives. Based on many years' experience in credit work and combined with the operating status of rural credit cooperatives in Liaoning Province, this paper briefly analyzes how to strengthen the credit risk management of rural credit cooperatives. I. Weak Link of Credit Risk Management Since its establishment in July 2005, Liaoning Rural Credit Cooperative has successively issued dozens of credit management systems, norms and operation methods. Through unremitting efforts in the past four years, we have actively resolved the historical burden, vigorously collected non-performing loans, strictly prevented and controlled new non-performing loans, and effectively improved the quality of credit assets. However, it is a new measure in recent two years to raise credit management to the level of risk management and set up a special risk management department in county-level legal person institutions. Judging from the requirements of risk management, there are still many weak links in the credit risk management of rural credit cooperatives in Liaoning Province, mainly in the following four aspects: (1) The credit management system is not strictly implemented, the internal control system is not perfect, and the pre-loan investigation system is not strictly implemented. Grass-roots credit cooperatives often omit the pre-loan investigation, making the investigation a mere formality. Such an investigation structure can only pay one-sided attention to the realization of collateral as the second repayment source, and the analysis of the borrower's first repayment source is inaccurate and insufficient. Second, loan review and loan approval are not strict enough. After the implementation of the headquarters operation, although the loan approval authority is concentrated in county-level cooperatives, the members of the loan review Committee know little about the basic situation of borrowers, which will inevitably lead to decision-making mistakes. Third, it is neglected to follow up after the loan. Due to the small amount of a single loan and the large number of loans, some large loans are not tracked and managed at all, and they do not understand the borrower's operating conditions and the use of funds. Once the loan becomes risky, it cannot be discovered in time. (2) The scale of unsecured small-scale farmers' credit loans is limited, which can not fully reflect the credit management policy of rural credit cooperatives. Loans to community organizations, such as facility agriculture and farmers' professional cooperatives, can usually help credit cooperatives to increase their loans. Most of these loans are in the form of mortgage guarantee. There are still some problems in practice: First, the value of collateral is generally overvalued. When the borrower's first repayment source is not enough to dispose of the collateral, its realized value is not enough to cover the loan principal and interest, and some even have to pay expensive asset preservation and execution fees; Second, because the business system is not perfect, the information of the guarantor is not fully investigated, and one person has multiple insurances and cross insurance. Third, the review of collateral is not comprehensive, the procedures are not standardized, and there are repeated guarantees, which forms potential risks. (3) The phenomenon of repossession and fixed interest with loans cannot be completely eliminated, and there are potential risks. Because the old business thinking can not be completely abandoned in a certain range, especially in remote grass-roots credit cooperatives, the credit risk of rural credit cooperatives is more prominent: first, many credit cooperatives take the way of repossession as long as they can recover the loan interest after the loan expires, and some large loans are repossessed many times, which affects the liquidity of credit funds and covers up potential credit risks; Second, the phenomenon of loan interest settlement still exists. Some credit cooperatives unilaterally complete the task of collecting interest and surplus indicators, blindly pursue false profits, ignore the management system to set interest on loans, and cover up the exposed credit risks with new violations. (4) The information feedback is inaccurate and incomplete. Because the existing business system is not perfect in procedure, it is not fully connected with the public security department and the credit information system of the People's Bank of China, and the borrower's information is inaccurate and incomplete, and the relevant information of the borrower does not exist. I don't understand the existing loans and bad records of both husband and wife, which leads to the appearance of illegal loans such as multi-borrowing, cross-borrowing and cross-regional borrowing, resulting in the phenomenon of multi-head borrowing by one household and cross-borrowing by multiple cooperatives. Second, how to strengthen the credit risk prevention of rural credit cooperatives (I) Adhere to the market positioning of serving agriculture, rural areas and farmers In order to meet the needs of building a new socialist countryside and truly implement the national economic policy of "ensuring growth", rural credit cooperatives should always adhere to serving agriculture, rural areas and farmers, increase the proportion of small loans, innovate the service level of supporting agriculture, and occupy and consolidate rural positions. In the case that large loans are approved by county-level associations, the right to issue micro-credit loans still belongs to grassroots credit cooperatives and branches. Increasing the investment in micro-credit loans can also avoid the situation that loan officers in grassroots credit cooperatives are doing nothing. Prudently put in large loans and strictly control lending to prevent large borrowers from forming loan risks. (2) Implement the system and strictly regulate the operation process of credit business. First, fully implement the loan responsible person system. Each loan must be collected by the responsible person, so that "whoever issues it is responsible, whoever issues it is responsible for the collection". This responsibility is not affected by my transfer from my post, and it is a lifelong responsibility system; The second is to fully implement the management system, and the whole process of credit business from acceptance, investigation and evaluation, review, approval, issuance, post-loan management and file management is carried out according to unified standards; The third is to strengthen the pre-loan review and post-loan management, and truly establish a binding institution that separates the loan review from the loan review. Through the risk management department, the county association strictly implements the separation of examination and loan, and changes the credit risk identification into early warning management; The fourth is to strictly guarantee mortgage procedures, standardize the identification and management of collateral, and resolve and transfer credit risks. (3) Strengthen the disposal and accountability of non-performing loans. For the recently formed non-performing loans, especially the newly added non-performing loans, the credit management department should report the situation to the risk management department in a timely manner, and the risk management department should take the lead, and the audit department should organize the establishment of a special working group to analyze and investigate the causes of non-performing loans and identify them according to their duties. In the case that the ready-made loan lenders timely collect the loan, and the collection fails, the working group will timely carry out asset preservation or legal proceedings to collect the loan according to law according to the loan contract. Members of the working group should distinguish responsibilities according to the post responsibilities of each post in the process of credit business operation, characterize market risks or illegal operations, determine the division of responsibilities between the person responsible for credit operation and the person responsible for credit post management, and then impose economic punishment, liability compensation and administrative treatment on the responsible person according to relevant regulations until the non-performing loans are executed. At the same time, the existing non-performing loans will be cut off from the old and the new, and the responsibility will be collected, and the non-performing credit assets will be gradually resolved and revitalized to improve the quality of credit assets. In short, the deeper the reform of rural credit cooperatives, the higher the requirements for the quality of credit assets, and the more important it is to guard against credit risks. How to continuously improve the credit risk management and prevention under the new situation is a subject that needs to be continuously discussed. We will continue to explore and summarize in our work, gradually improve the credit risk management, and ensure the sustained and healthy development of credit work.