Research on Credit Risk of Rural Banks

The financial industry is vital to maintaining the country's economic operation. The financial industry is roughly divided into four categories: banking, insurance, securities and trust banks are the top priority of the financial industry, and the banking industry's operation directly affects a country's or region's economic situation. The primary way of banks' business income is to issue loans, and the non-performing loan rate of banks is one of the essential indicators to measure the profitability and competitiveness of banks; as the restructuring of rural credit cooperatives forms rural banks, their management and operation systems are inferior to those of central commercial banks. Compared with them, rural commercial banks have the highest NPL rate; in recent years, with the continuous development of the personal loan business, the proportion of total personal loans in total loans of rural commercial banks has been increasing, and how to reduce the NPL rate has become the most urgent need of rural banks.