Game Analysis of Credit Risk Management in Rural Credit Cooperatives

Through building a game model,a Game analysis is carried out on the transaction behavior between rural credit cooperatives and the farmers asking for a loan.It is found that four main factors affecting defaults on loan contracts: the loan amount,default cost,successful return rate,and the normal implementation profit.To prevent credit risks,rural credit cooperatives must transform the business philosophy,reform the management system,and build a long-term,feasible credit assessment system for rural households to raise their risk management capability.In addition,governments at all levels need to enhance aid to agriculture,rural areas and rural residents;make better rural finance environment;and offer powerful support to rural credit cooperatives to facilitate their steady development in the long run.