Research Of Supply And Demand Characteristics Of Peasant Household Credit And Effective Supply System

At present, China’s agriculture is in the transition from traditional agriculture to modernagriculture, while peasant household economy occupies an important strategic position inmodern agriculture and the process of the new rural construction. With the development of therural market economy, differences among peasant households’ income, expenditure andproductive investment must exist in the level of time and number, which are hardly to meet byaccumulation of the farmers alone and will bring the strong demand for credit. However, withthe reform of rural economy and commercialization in rural finance getting deeper, in resentyears, the peasant household is difficult to get loan while financial institutions is hard to loan.As a result, increasing farmers’ income and developing peasant household economy are thefoundations of modern agriculture and new rural construction. Based on this reality, with thedemand of farmer credit and its characteristics as the breakthrough point, the study usescomprehensive interpretations of the effective supply and demand situation of peasanthousehold credit and its characteristics and the empirical analysis of the reasons in the lack ofeffective demand of peasant household credit to put forward the policy suggestions to perfectand innovate the peasant system of effective supply in household credit, which is of importanttheoretical value and practical guiding significance.The paper includes eight chapters, with the main research content is targeted proposingways and policy suggestions, on the basis of rural finance and peasant household creditsupply and demand theory, to improve and innovate the peasant system of effective supply inhousehold credit according to questionnaire and field survey data in Shandong provincefarmer credit supply and demand, comprehensive interpretations of the effective supply anddemand situation of peasant household credit and its characteristics and the empirical analysisof the reasons in the lack of effective demand of peasant household credit, and successfulexperience at home and abroad for reference.Research conclusions:Firstly, we analyze the credit demand of peasant household in our country at presentstage and its characteristics empirically through the questionnaire and on-the-spotinvestigation: the peasant households’ business activity is diversified, which has strongdemand of capital, and relatives, friends and rural credit cooperatives are major suppliers of peasant household credit; the use of farmers’ loan involves diverse aspects of production andlife;Secondly, we analyze the condition and characteristics of effective supply in farmercredit, using the effective supply theory and survey data.In the supply of farmers credit, ruralcredit cooperatives predominates, followed by agricultural bank and the agriculturaldevelopment bank, and new types of financial institutions (village Banks, funds support)ranks third, with non-bank financial institutions (loan company, guarantee company) and theprivate finance as supplement. The basic situation is effective supply insufficient.Thirdly, we deeply analyze the primary sources of it based of comprehensive reflectionand analysis of the supply and demand situation and characteristics of rural household credit:loans for peasant household are in big risk and call for high transaction costs, of which the useis more variable and the security (collateral) terms are inadequate; rural financial institutionsare more commercial now. With strict constraint in loan risk and internal control, creditofficers fear "borrowed"; the construction of rural financial organization system is imperfect.The coverage of grass-roots financial outlets in township, town and village is low. Themotivation of credit personnel is not enough and the competition in financial market isinsufficient; the supportive policies are lack of continuity, detailed rules and regulations.Some relevant policies’ thresholds are too high to encourage the rural financial institutions;Fourthly, we develop the overall strategy and general principles to perfect and innovatethe effective supply system of peasant household credit in new period, on the basis ofsuccessful experience abroad; from a functional perspective, this paper expounds the mainmeasures to improve and innovate of the effective supply system of peasant household creditand its functions. We should build the effective supply system of peasant household creditscientifically, innovate the service mode and product system of peasant household credit,strengthen the construction of peasant household credit system, reform and perfect ruralfinancial supervision system, and establish the rural financial supportive policy systemscientifically; on this basis, we also should design the peasant household mortgage loans(items) scientifically, establish and improve the rural cooperative financial regulations, andactively promote the reform of interest marketization in rural areas.