Because of the special service object and weak credit environment,village banks are facing serious credit risks of loan.The main reasons for such risk include imperfect credit inquiry system,the borrower’s weak credit consciousness,lack of collateral for loans,and high homoplasy of agricultural products and so on.Then the game theory is used to find that the primary task to recognize village bank’s credit risks of loan is to accurately identify the probability of belonging to the low-quality one for the borrower,which has a positive correlation with the cost of borrower’s cheating and a negative correlation with borrower’s profit and proportion of high-quality borrowers,and village bank’s loan interest rate is positively correlated with this probability.Then this paper puts forward some suggestions on how to identify and manage loan’s credit risks for the village banks,such as keeping positive interaction with borrowers,perfecting credit mortgage system in rural areas,perfecting dishonesty punishment mechanism,regulating credit interest rate pricing mechanism and developing joint security system of loans among rural households and so on.