Study On Operating Mechanism And Efficiency Of Forest Property Right Mortgage Loan

As we know, providing good finance services for Chinese farmers is one of the basic way to solve the problem of agriculture, farmers and rural areas. It has been shown that the practice and development of Forest Right Mortgage Loan, as an innovative tool for solving rural finance issues, has broaden the development methods for rural finance. It will certainly play an important role in the rural finance areas, with comprehensive promotion on forest tenure reform, practice and development of formal rural finance institutions in this areas. This study, main point on empirical research, includes four parts:overview, principles analysis, empirical analysis and policy recommendations and conclusions. Firstly, it makes research status quo of Forest Right Mortgage Loan and some related rural finance areas, analyses expansion of the collateral and connotation of Forest Right Mortgage Loan and its operation mechanism, and makes comparative analysis on several practice patterns, explains its mechanism. Then it analyses institutional supply, farmers'demand and services of Forest Right Mortgage Loan, takes an performance evaluation in Fujian Province with the surveyed field data from the perspective of rural credit needs. For this basis, it discusses government role in Forest Right Mortgage Loan. Finally it is its conclusions and policy recommendations.The main conclusions may include:The first, it shows, as an innovative finance instruments under building the sustainable rural finance business ideas, Forest Right Mortgage Loan provides a new way for rural finance development, solves dilemma of farmers lacking collateral for loans in a long time, enlarges Chinese rural finance development areas. Secondly, it proves Forest Right Mortgage Loan to be the inevitable choice for rural finance development and actual needs with the interaction between forest tenure reform and rural finance system promotion for formal rural finance institutions. Thirdly, comparison to the ongoing micro-credit, analysis on its supply and demand level shows that Forest Right Mortgage Loan is very remarkable for rural formal finance institutions on microstructure, business, policy environment, using social capital and other aspects. At the same time, there are some barriers, including their own development capacity building, external environment and so on. Fourthly, it shows that executive incentives and economic incentives are very important to formal finance institutions in developing Forest Right Mortgage Loan. For the above two, executive incentives is more important in the early stage. But for the sustainable development perspective, economic incentives executive is more realistic. Fifthly, it shows Forest Right Mortgage Loan operation mechanism, drawing on that of micro-credit, gives full play to informal system (credit system), forest insurance and so on. It achieves innovative and effective integration of formal and informal system. Sixthly, empirical analysis shows that the development of Forest Right Mortgage Loan has played an improving role for rural formal finance operation performance, at the same time, carried some positive role on farmers' credit availability, improvement of production and income. Seventhly, it proves that the government plays an important function and role in development of rural finance. To construct and perfect good relationship and interaction mechanism between government, finance institutions and farmers will help to promote the sustainable development of Forest Right Mortgage Loan.The principal innovation may include the below five points:The first, from four levels-rural credit markets, target groups, institutions and farmers, this study reveals the important role of practice and development of Forest Right Mortgage Loan on rural finance markets. Secondly, it makes research conceptual framework of Forest Right Mortgage Loan under the rural finance system. Thirdly, from the rural credit needs perspective, it has done some systemly research on supply agencies, farmers demand, products conditions and the advantages and disadvantages for Forest Right Mortgage Loan. Fourthly, by empirical analysis, it makes more comprehensive and systematic evaluation of Forest Mortgage Righgt Loan performance in Fujian Province. At last, on system theory views, the study and empirical analysis of the interactive relationship among government, institutions and farmers in the rural financial market has a certain innovative, it helps to construct a complete, guideline government proposal.