Financial Support,the New Rural Financial Institutions Innovation And The Development Of The Rural Areas

The rural finance reform has become the policy orientation by financial innovation in order to increase the supply of rural finance, with the national number of rural financial development policies to encourage the introduction of various new-type rural financial institutions came into being. December20,2006Banking Regulatory Commission issued "on the adjustment access policy to relax banking financial institutions in rural areas to better support new socialist countryside construction of opinions", January22,2007promulgated the "Provisional Regulations on the management of village banks.""provisional Regulations on loans to corporate governance","provisional Regulations on the management of rural credit union funds," and village banks, finance companies, rural fund cooperatives set up the processing of the index, village banks, loan companies and rural mutual cooperatives and other new-type rural financial institutions in over the development has been vigorously promoted. May4,2008, the CBRC, the PBOC issued "on the Micro-finance company pilot guidance", the Micro-finance companies have been established in various places.Since the introduction of the new rural financial institutions policy, China's new rural financial institutions has been developing rapidly. At the end of2011, China had set up786new rural financial institutions, including726village banks,10loan companies, rural fund cooperatives50. Organizations have been formed, with473located in the central and western provinces, accounting for60%. The loan balance of131.6billion yuan, more than80percent of "rural" and small businesses, including farmers loan balance of43.55billion yuan, small business loans of63.15billion yuan, central and western regions the number of loans to farmers accounted for all loans to farmers above70%. In addition, Micro-finance companies in the country has also been a rapid development. As of the end of December2011, Micro-finance companies established throughout the country to4282, loans reached391.5billion yuan. The emergence of new rural financial institutions to improve the rural financial market environment, the degree of competition and operational efficiency of rural financial markets, to fill in parts of rural financial services, blank, and played an active role to enhance the level of rural financial services. Play a positive role in the small loan companies to guide private capital in agriculture-related business, also in the cooperation between the bank and microfinance company and preliminary experience, small loan companies have played a role as a bridge between large funds and small customers.New types of rural financial institutions invest on their products, services, technology and other aspects of innovation, to enhance their competitiveness. Organization and technological innovations of all kinds of new rural financial institutions will no doubt multi-level, wide coverage, and provide a historic opportunity for the formation of appropriate competition system of rural financial organizations and financial markets, has injected vitality into China's rural financial market, improve the rural financial markets, the intensity of competition, to some extent, improve the financing environment of rural areas. The new rural financial institutions, development and innovation, from the perspective of the theory of financial development in rural areas can be regarded as financial deepening behavior. Financial deepening in rural areas will increase the number of financial institutions in rural areas, and will improve the level of competition for rural financial markets, thus contributing to increase savings and investment, promote economic growth. Development of new rural financial institutions, help to improve social capital rationing efficiency, through increased investment and employment, promote local economic development, increase farmers' income level.This paper will be based on the perspective of the new rural financial institutions innovation, research on the relationship of technological advances in agriculture, rural economic growth, increasing farmers' income and financial support. The body of this article includes eight chapters, the first chapter is an introduction, literature review, Chapter III to Chapter VIII of the main portion of the transcript.The first chapter, Introduction, including the research background, research objectives, methods, and research framework. Chapter â…¡, literature review, including the theory of financial development, rural financial development theory, the new rural financial institutions literature.The third chapter, the foreign development of rural financial experience and China's rural financial development review, introduced abroad rural financial development experience, and the development of China's rural financial course of development and new rural financial institutions.Chapter4, financial development and its three rural theoretical analysis, analyzed theoretically in the context of the new rural financial institutions, financial innovation, financial support of farmers' income and rural economic development and agricultural technological progress.Chapter, financial support, the new rural financial institutions, innovation and technological advances in agriculture, empirical analysis of China's provinces as a sample of financial support, the new rural financial institutions, innovation and technological advances in agriculture. The results showed that, showing the progress of agricultural technology level of each region to the east and west followed by decreasing trend since2006, the speed of technological advances in agriculture improved; raise the level of financial support to promote the advancement of agricultural technology, to promote the development of agricultural production. In addition, since the rural financial system reform was launched in2006, the introduction of the policy and implementation of new rural financial institutions, help to improve the rural financial market structure, improve the level of agricultural financial support to promote the progress of the agricultural technology of the various regions.Chapter â…¥, based on the innovative perspective of the new rural financial institutions, Shandong Province, County data sample, the empirical analysis of the relationship between rural competition in the banking sector and rural economic growth. The study results showed that the competitive structure of the financial industry to promote the economic development of rural areas. In addition, the rural financial system reform, especially since2008, the new rural financial institutions (including rural banks, credit union funds, finance companies and Micro-finance company) introduction of the policy and help to improve the financial sector of the rural areas structure, and promote financial sector development in rural areas.Chapter VII, based on the innovative perspective of the new rural financial institutions, the empirical research the relationship between financial support and increasing farmers 'income and rural poverty alleviation to explore the impact of the innovation of the new rural financial institutions on farmers' income and rural poverty reduction effect. The results show that the entry of new rural financial institutions help to promote the improvement of farmers' income level. In addition, raising the level of rural financial support will help to improve the poverty status of rural areas, reduce the incidence of poverty in rural areas, thereby facilitating and promoting the development of new rural financial institutions to provide evidence.Chapter VIII Conclusions and policy recommendations, a summary of the conclusion of this article, and relevant policy recommendations that promote the development of new rural financial institutions, improve the rural financial system.The theoretical analysis results show that the development of new rural financial institutions, on the one hand, help to improve the rural financial market structure, reduce the supply price of financial products; the other hand, contribute to the innovation of financial products in rural areas, which developed a suitable different parts of rural financial products with local characteristics. At the same time, after the development of new rural financial institutions, financial markets on the level of advancement of agricultural technology and rural economic growth will have a positive impact. Empirical research results found, financial support for the progress of agricultural technology level impact can be to some extent, promote the improvement of agricultural technology level of; rural financial market competitive structure of the improvements, there is conducive to the growth of rural economy economy's; In addition, financial support for the level of improve for improving farmers' income and reduce rural poverty rate, plays an active role.The greatest innovation of this paper is based on the perspectives of new rural financial institutions development to explore the relationship of financial support and technological advances in agriculture, rural economic growth and increasing farmers' income.The author believes that research and previous studies with the following innovation:(1) This paper theoretically analyzes the innovation of new rural financial institutions, rural financial markets; theoretically analyzes the impact of the financial support on the technological advances in agriculture, rural economic growth and increasing farmers'income.(2) through the use of the DEA method estimates the provinces of the country the level of technological advances in agriculture and the financial support of the impact of technological advances in agriculture.(3) Based on the data of counties in Shandong Province, the empirical analysis of the impact of new rural financial institutions in the rural financial market structure, and analyze its role in promoting rural economic growth.(4) the use of national sample data, based on the perspective of the new rural financial institutions to develop an empirical analysis of the impact of the financial support of the income level of farmers and rural poverty alleviation.