Farmer's Credit Risk Evaluation Based on the Balanced Scorecard

With the rapid development of market economy in China, the current rural industry structure changes dramatically, more and more farmers apply for a loan. But because of the imperfect rural financial system and the uniqueness of peasant household credit risk, the farmer's credit evaluation is lack of standardization, and the farmer credit. rating is distorting. These are serious impact on the credit agency of farmers and the release of the borrow fund, further increasing the farmers of the lack of capital demand levels. It has important practical significance no matter for the credit agencies or farmers and other stakeholders to construct an evaluation criterion of farmer credit rating. The purposes of this paper are to analysis the various indicators, and find significantly higher credit rating distinction between the farmers(good customers) and the lower credit rating of the rural households(bad customers) indicators. The Balanced Scorecard method is adopted for evaluating farmer's credit scoring. The case study shows that the method is effective for farmer's credit rating evaluation and is helpful for decision-making for the relevant credit agency.