Rh Esearcon The "Ternary Structure" Mode Of Rural Finance System In China

Facts and researches have indicated that complete and perfect financial system hasthe positive promotion to the economic development, on the contrary, incomplete andimperfect financial system has not only no promotion but also the negative influence oneconomic development.“Three rural issues” which is the problem need us to face in theprocess of China’s rapid economic growth has been both an emphasis and a nodus. Sothe work to perfect the rural financial system would be the breakthrough to the “Threerual issues”.The rual finance system in China has the complete structures with includespolicy-based financial institutions、Cooperative financial institutions and CommercialFinancial Institutions on the concept of “Financial institution perspective”, but it didn’tfunction completely and perfectly. Therefore, our research begins from this specific issuein China, and all the researches, analysis and conclusions surround the issue.Fistly, the author combes the the relative concepts and literature, then gives a newconcepts of “Ternary structure”, and summarize the charateristics of the “Ternarystructure”. Analyze the development course and the functional characteristics of the threeelements one by one. The article agues that the theoretical causation of the “Ternarystructure” are the theory of labor division, public product and the asymmetry information;the immediate causation is the irreparable defect of the three elements which need tosupplement and coordinate each other; the root causation is there are different functionalneeds to the three elements in different stages of the argriculture development.Secondly, we analyzed the situation of the three elements. The study shows that thepolicy-based financial institutions have the low service coverage, and didn’t meet thedemand of resource distribute function and the guidance function on the input ofcooperative financial institutions and commercial financial institutions to the rural areas.The commercial financial institutions have the low input to the rual economic, the highnon-performing loan ratio, and the unreasonable capital structure. These all place thecommercial financial institutions in the predicament of the sustainable development. Thecooperative financial institutions have the highest service coverage to the rual economicamong the three elements, but they also have the lowest efficiency and unreasonable governance, they are tending toward commercialization and are not active to face therural service. Meanwhile the cooperative financial institutions are also perplexed by thehigh non-performing loan ratio. Above all, the efficiency of the “Ternary structure”financial system is low, and the functions of the system are insufficiency. The reform ofthe financial system only fouced on the single institution and the type of organization,but ignored the cooperation among the three elements and the improvement of thefunctions.In order to give a more intuitive reflection to the situation, we use the method ofquantitative analysis to study the overall efficiency and the regional efficiency of the“Ternary structure” until finally making the following conclusions.1. The conclusion of Granger causality test shows us that the scale efficiency of therural financial system is the Granger causation to the agriculture development and thefamers’ net income, but the structure efficiency and the resource distribution efficiencyof the system are not the causations to the agriculture development, the famers’ netincome and the development of rual economic. This concusion indicates that theinfluence of the rural finacial system to the rual econmics is mainly foucs on the level ofthe input.Other conculsions to the overall efficiency are based on the impulse responsefunction. It shows us that the scale efficiency of the rural financial system makes themain effect to the agriculture development, the net income of farmers and the rualeconomic development. But the structure efficiency and the rescource distributionefficiency of the system make the secondary effects. These conculsions further indicatesthat the rural finacial system of China is still at the early stage. The structure efficiency ofthe “Ternary structure”system needs to be optimized, and the resources distributionefficiency of the “Ternary structure”system needs to be improved.2. The regional efficiency anlysis indicates that there are visible differences aboutthe resources distribution efficiency among the eastern,the middle and western districtsin China. The efficiency of the rural financial system in eastern districts is higher thanthat in the middle district, and the efficieny in the middle district is also higher than thatin the western district. The low efficiency of the system in western district can be showednot only in the technical efficiency which means the shortage of institutional supply, butalso in the scale efficiency that means the resources input is lack. The final conclusion of the quantitative analysis is that the influence of the ruralfinacial system to the rual econmics is mainly foucs on the level of the input, but theinput is gravely insufficient. How to enlarge the scale of the input, and increase thecoverage of the service becomes the first issue which needs to be solved during thedevelopment of the rual financal system. Meanwhile, the financial institutions needto improve synthetical strength and reduce the regional differences. Otherwisepolicymakers should avoid the phenomenon of "one size fits all".Finally, the author tries to explore a proper way to perfect the “Ternary structure” ofrural finance system. To adapt the agriculture economic development, to coordinate thefunctions of the three elements, and to achieve sustainale development of the threeelements are the overall goals. At the same time, author suggests that the policy-basedfinancial institutions need to deal with the fiscal fuction and the financial function. Theyalso need to increase the service to the rural economic, and enhance the guidancefunction; the cooperative financial institutions should reform themselves, some of themcan become the joint share system if they have the sufficient conditions, and otherscan reform to the joint stock cooperative system. This reform can not only save thenature of the cooperative financial institutions, but also achieve the aim to increase thefunding and expand the stock. The commercial financial institutions should locate theposition clearly, and increase the service in the rual areas. Meanwhile, they also need tospeed up the reforms and improve the ability of sustainable development. Otherwise, theauthor raised two types of innovation model. One type is that makes the cooperativefinancial institutions corporate with the policy-based financial institutions to be an effientform of organization, in which that the policy-based finiancial institutions lead andmanaged the cooperative financial institutions. The other type is that calls up all theelements of the rual financial system to build a “finacial linkage net”. In addition, relatedsupporting system should be completed.All of these can play a good financial foundationto solve the problems of the“Three rual issues”.