Research on the Credit Risk Influencing factors of Farmer Loan for Rural Commercial Bank Based on Probit Model

DOI

10.2991/msmi-15.2015.33How to use a DOI?

Keywords

Rural commercial bank, Farmer loan, Credit risk, Influence factors, Probit model.

Abstract

This paper takes farmer loan for Rural Commercial Bank as an object of study, discusses the credit risk and its influence factors. Based on the survey data from Hubei Rural Commercial Bank, Probit model is applied to analyze these factors. The findings are showed as follows: There is a significant and negative relationship between the credit risk of farmer loan and the number of family labor and total household assets, while the total household debt and loan rates affect it positively. In addition, whether the households have children in university, whether the loan secured and the loan purposes also have significant effect on the credit risk. Therefore, Rural Commercial Bank should examine the basic information of farmers carefully; implement preferential interest rate policy; encourage productive and secured loan to prevent the occurrence of credit risk.

Copyright

© 2015, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Ya-Qiong Pan
AU  - Ze-Qun Song
PY  - 2015/08
DA  - 2015/08
TI  - Research on the Credit Risk Influencing factors of Farmer Loan for Rural Commercial Bank Based on Probit Model
BT  - Proceedings of the 2015 International Conference on Management Science and Management Innovation
PB  - Atlantis Press
SP  - 175
EP  - 180
SN  - 2352-5428
UR  - https://doi.org/10.2991/msmi-15.2015.33
DO  - 10.2991/msmi-15.2015.33
ID  - Pan2015/08
ER  -