Study On The Evaluation System Of Farmers Credit

Rural Finance is an important part of our financial system and is an important force toSupport and service agriculture, rural areas and farmers. Development and innovation of ruralfinance play an important role to Implement the national support and benefit agriculturepolicy and maintain the rural social and economic life stability. In recent years, the financialinstitutions increase agriculture-related credit Investment, support for agriculture continues tobe improved. According to the statistics of The People's Bank of China, all financialinstitutions loan balance is54.79trillion RMB in the end of December2011, and Cumulativeincrease7.47trillion RMB throughout the year, an increase of15.8%.Among them, the majorfinancial institutions and the rural cooperative financial institutions, rural banks, urban creditcooperatives, finance companies' foreign currency balance of rural loans is12.15trillionRMB, an increase of24.7%.However, for a long time, China's rural surplus funds flow intofinancial institutions by way of deposits and credit funds through financial institutions toescape from rural areas, it further exacerbate the supply and demand contradictions andimbalances of the rural fund. According to statistics, from1994to2006, China's rural fundsnet outflow reached1.2trillion RMB, the financial capital of inadequate investment in ruralareas, especially farmers.Farmer's loans balance totaled3.1trillion RMB, only accounting for5.66percent of the loan balance, accounting for25.51%of the rural loan balance in the end ofDecember2011. In the end of June2010, Fujian farmer's loans totaled82.312billion RMB,accounting for22.04%of the total rural loans.In order to solve the difficulty in obtaining loans of farmers in recent years, the state activelypromoting microfinance credit and farmers guaranteed loans. But the problem is how tomeasure farmers' credit, control the credit risk of farmers. To address this problem, ruralfinancial institutions, particularly the Rural Credit Union is beginning to realize theimportance of establishing farmer credit evaluation system. In order to optimize theenvironment of Fujian Rural Credit, Fujian Rural Credit Union issued "Credit Village ofFujian Rural Credit Cooperatives, Credit Township(town)assessmen(tTrial)"in August2007.Fujian Rural Credit Union timely amendment of the farmer's credit evaluation system basedon the actual situation of the rural credit in2007to strengthen the assessment of theguaranteed loans and microfinance credit, to expand the scope of farmers rating.So, how isthe performance of credit evaluation system? And whether it can help financial institutions toeffectively prevent risks and promote the farmers to improve credit awareness? For anexample, as of the end of June2010, Fujian farmers' non-performing loans rate was2.33%,higher than the agriculture-related loans and loans non-performing rate of0.56percent and1.25percent. Seen in this light, the building of the farmers' credit evaluation system can noteffectively distinguish between good customers and bad customers. Therefore, use existingfarmers loan information to evaluate farmers' credit is a practical and economic significancesubject. This study first defines the basic concept of farmers, credit, credit risk, household credit,farmer credit evaluation, and descriptive analyze the factors that affect the Fujian farmers'credit from six aspects of farmers themselves and family characteristics, farmers solvency,farmers operating conditions, loan situation, farmers credibility, Macro environment of thefarmers Live. Use Logistic model to analyze the significant factors of impact of credit ofFujian farmers According to the data collected from farmers. The model results show that: theage of the farmers, the health status of farmers, farmers' education, and farmers' occupation,family members are now or have served as village cadres, the number of family labor, thenumber of Maintenance and upbringing of family, the number of Families migrant workers,the head of household annual income, annual household net income, per capita annual netincome, the level of household spending, family property status, Total existing borrowings offarmers, farmers' social capital position, Farmers of arable land, Farm woodland area, thefarmers of non-farm business income, the amount of loans of farmers, farmers' use ofborrowing, whether the loan is Mortgaged, whether the loan is secured, personal character,credit history and other factors in a given significant confidence level significantly AffectsFujian farmers' credit risks Establish Fujian farmers Credit evaluation index system and useAHP to comprehensive analyze and evaluate According to the ignificant influencefactors.Calculate the score of the farmers According to the farmers' index score and theweighting score of farmers, it finds that83farmers credit status and solvency in general in205farmers. And45farmers' credit status has larger problems, the credit score of0.6pointsor less, these farmers exists credit default risk, it must be high priority. Finally, the paperpropose to establish policy agricultural insurance system, optimize the structure of the loanterm, innovative guarantee model of agricultural financing, strengthen farmers loans topost-supervision, establish a trustworthy incentives and other measures to improve thefarmers credit.