| Finance is the core of the modern national economy. The development of new rural are closely connected to the strong support of rural finance. In spite of the three significant reforms and adjustments during the thirty-odd years of the reform and opening-up in China, rural financial system and rural financial institution have been failed to fundamentally turn around the situation of large scale rural capital outflow. Problems still exist in rural areas especially in backward parts and at town and village level, such as low branch network coverage, short of financial supply and insufficient competition. Rural small and micro business, individual business and peasant families find it difficult to secure bank loans, so they turn to underground banks and usurious loaners from time to time. Under the circumstances, China Banking Regulatory Commission unveiled related policies in December,2006to dramatically lower the threshold for market access to rural banking institutions. Financial capital from abroad and home, industrial capital and private capital are encouraged and guided to set up three sorts of new rural financial institutions in rural area, which are local banks, micro-credit companies and rural funds cooperatives. In vigorously developing these new institutions rooted in and served for rural areas, rural capital is expected to flow back partly. With less management levels and more flexible business operation, new rural financial institutions will take a full part in supporting peasants, small business and micro business. Meanwhile, they will change rural financial competitive landscape and improve the efficiency of rural financial resource allocation. Six years more have gone by since the announcement of the new rural financial policies, so how well do the rural banks, micro-credit companies and rural funds cooperatives develop? What are the new characteristics of these new rural financial institutions compared to traditional ones? How successful are the expected policies effects and goals achieved? These are the main points of this research.The paper uses the sustainable development of new rural financial institutions as a clue, and firstly explores how the new rural financial institutions survive and develop on the theoretical basis. Under the background of balancing urban-rural developments, rural financial services need to meet the demand of the development of countryside, agriculture and farmers. In view of this, the paper further discusses the historical changes and environmental constraints of the small and medium-sized financial institutions in rural China. Then through field investigation into the development status, characteristics and existing problems of three new rural financial institutions in China, this paper finds out the main factors affecting the sustainable development of new rural financial institutions. At the same time, by using the survey data of the trial sites, it discusses the policy effects of new rural financial institutions on supporting farmers and small business and system design factors preventing policy effects from making progress. On this basis, the paper, which after studying and referring to the models and experience of foreign rural financial institutions and combined with the financial reality of our country and rural development, puts forward the market positioning strategy for the sustainable development of new rural financial institutions in China. And it also proposes development models and strategies for three kinds of new rural financial institutions, as well as the related reform measures. This thesis consists of six parts, the contents and main points of each chapter are as follows:The first chapter is Instruction, which makes a brief introduction and statement about the background, objectives and importance, basic research ideas and methods, etc. Meanwhile, this chapter reviews the research trend at both home and abroad and major opinions. Foreign research trend is basically stated from three aspects:the evolution of rural financial theories, the innovation of rural financial service, rural financial system environment. Domestic research trend is reviewed and generalized about the relation between rural financial and rural economic growth, rural policy-based financial establishments and reforms, rural credit cooperatives' property right reforms, the transformation in rural financial models, the general theories in developing new rural financial institutions. On the whole, the existing references are mainly about traditional rural financial institutions on their problems and the countermeasures. There is relatively a lack of research on new rural financial institutions about their development characteristics, policy effects and sustainable development. The second chapter is the General Analysis of New Rural Financial Institutions'Development. In this chapter, new rural financial institutions are compared with traditional rural financial institutions in access requirement, operational characteristics and functions. This chapter also analyzes the special background and theoretical basis on which new rural financial institutions founded. The specific research ideas are as follow:firstly, it analyzes the status of new rural financial institutions in the whole rural financial system; secondly, it defines the three kinds'of new rural financial institutions, namely, local banks, micro-credit companies and rural funds cooperatives; thirdly, in light of the changes to rural financial regulations, it discusses the background and system environment under which new rural financial institutions were created. Moreover, it points out that the significance of developing new rural financial institutions lies in improving rural financial service coverage, increasing rural capital supply and ameliorating rural financial market competitive landscape. It also talks about how economically helpful new rural financial institutions are to the development of rural areas; lastly, it analyzes the theoretical basis of rural financial institutions. The research suggests that the new rural financial institutions not only are the practical demand of the rural economic and social development and the reform of the rural financial system, but they come into being and develop according to necessary theoretical basis, including Financial Repression, Subsidized Credit Paradigm, The Long Tail, Incomplete Competition Market Theory, the Rural Financial Sustainable Development Theory.The third chapter is the Investigation into the Development Characteristics of Rural Financial Institutions. Based on field survey data, this chapter makes a brief analysis of the overall development pattern of new rural financial institutions in recent years. Then it further discusses respectively on three sorts of new rural financial institutions about development status, characteristics, effects and problems. Through comparison, it concludes that local banks are developing in the fastest speed among three institutions while most of them locate at the eastern part. Rural funds cooperatives develop at a relatively slow speed and locate mainly in central and western regions. Micro-credit companies are almost equal in quantity among three parts of China but quite different in total amount of the capital and loan scale. The thesis takes Fujian Province as an example and analyzes the development status and operational characteristics of local banks and Micro-credit companies. Local banks have some problems such as they are similar to their main originating banks, established mainly in the counties not in towns and villages, difficult to raise capital, with high operating costs, low level of profitability and high risk of loaning. Micro-credit companies in Fujian Province and other areas, which are on trial, are successful in promoting the innovation of rural financial organization system, expanding the funding sources of local economy, alleviating the financial problems of rural small and medium-sized enterprises and peasants, containing the illegal private lending. These micro-credit companies also have their own problems, including the obscure legal status, the low financing lever, limited financing sources, inadequate professional management personnel and difficult supervision. Besides, the thesis further analyzes the problems of the micro-credit companies from three aspects which are legal position, supervision system and development direction. Finally, this chapter compares three models of rural funds cooperatives by using the survey data of Sichuan, Henan and Shandong. And it focuses on the analysis of operation characteristics of rural funds cooperatives on village level. Rural funds cooperatives give special importance to the orientation of the communities and self management. They also emphasize the clear property right management and the complementary assistance between poor and non-poor households. Rural funds cooperatives have incomparable advantages in helping the poor and supporting agriculture over rural banks and micro-credit companies. But they also run into difficulties, for example, there is no clear legal position, management structure is not perfect, and they lack operational sustainability of projects.The fourth chapter is the Analysis of Policy Effects of New Rural Financial Institutions. This chapter begins with an analysis of policy objectives, policy transmission process and conduction mechanism of the new rural financial institutions. Based on these, the thesis draws some conclusions after comparing the three years' objectives of the new rural financial institutions. The expected amount of new rural financial institutions is only achieved by60.7%. Still, the geographical distribution objective that new rural financial institutions locate more in the central and western regions and agricultural counties and poverty-stricken areas has not be fully realized. This chapter also uses household survey data form Sichuan, Henan and Shandong. And a regression model is established to make an empirical research on the effect to support peasants of rural funds cooperatives on village level. The research finds out that farmers'income will grow substantially if they join the new rural financial institutions and use the mutual funds. Non-poor farmers are more willing to obtain loans from rural financial institutions than poor farmers, which suggest that the support of mutual funds to poor farmers is insufficient. There is a close relationship between the quality of rural mutual funds and that of farmers, which include educations level and health status of the householders. Apart from its economic value, rural funds cooperatives which as community cooperative financial organizations also make a contribution towards improving relationships between members, groups, villagers. Thus, they have a positive effect on the positive social governance. Finally, this chapter discusses the system design factors influencing the policy effect of new rural financial institutions. It concludes that the contradictions and conflicts in designing system, such as in the scale selection of small profit or scale economy, in the target selection of commercial finance or inclusive financial, seriously affect the implementation of the new rural financial institutions policy effect and policy objectives. In order to realize the sustainable development of new rural financial institutions, we must not avoid addressing the contradictions in system design level.The fifth chapter is the Development Model and Experience of Foreign Rural Financial Institutions. This chapter introduces and analyzes the development models and experience of foreign rural financial institutions in developed and developing countries. Among developed countries, it selects and compares the development models and experience of rural financial institutions in America, France and Japan. While among developing countries, it selects and compares those in India, Indonesia and Bangladesh. The important enlightenment of foreign experience to China's rural financial system reform and development of new rural financial institutions is as follow:the rural financial system is relatively independent which consists of rural commercial finance, policy finance and cooperative finance; the construction of rural financial system must be based on our own national conditions rather than copying blindly; emphasizing the role of government in the development of rural financial institutions; financial cooperation is of special importance in the rural financial system; the steady development of rural financial institutions should have the perfect laws and regulations as its basis and guarantee.The sixth chapter is the Selection of Sustainable Development Model and Countermeasures of New Rural Financial Institutions in China, which is the end of this paper. Given the similarities and differences of three kinds of new rural financial institutions, and drawing lessons from the development experience of foreign rural financial institutions, it firstly makes an overall positioning on the development direction of future new rural financial institutions and its market functions of rural financial system. According to the different characteristics of local banks, micro-credit companies and rural funds cooperatives, it then puts forward their respective models and management strategies for further development. Finally, it also comes up with concrete proposals to increase policy support, and actively promote the related reform, in order to create the system foundation and environment for the sustainable development of new rural financial institutions. In market positioning, we must make it clear that the new rural financial institutions is the new attribution to the small financial institutions and inclusive rural financial system at rural community level. Adhere to the service principle that new rural financial institutions have in supporting peasants, small business and micro business. Adhere to the operating principle of characteristic, profitable and sustainable. And lower the market access qualifications, take the incentive and restraint mechanisms and introduce multiple capital investments. Meantime, construct the rural financial supervision system that central government and local government supervise collaboratively according to administrative level. In choosing the sustainable development model, local banks can select the general branch system model or holding company model in future development. Micro-credit companies can choose to turn into professional loan retailers or to create conditions to transform into local banks. Multiparty collaboration and partly integration models should be the paths for rural mutual cooperatives. These paths could be the joint development model of rural funds cooperatives and commercial banks, the joint alliance model of rural funds cooperatives in different areas, or the joint development model of rural funds cooperatives and rural agricultural cooperatives. In addition to model choices, the paper also makes specific suggestions about new rural finance institutions that could meet both policies need to support peasants and small business and its sustainable development plans. Based on the perspectives of financial policy, monetary policy, the optimization of rural credit environment, the establishment of deposit insurance system and agricultural insurance system, the paper finally proposes a series of measures to increase policy support and to promote related reforms actively. It puts special emphasis on the function of agricultural insurance to share and transfer the rural credit risk. Specifically, it proposes the approach and significance of the cooperation between new rural financial institutions and rural insurance institutions and that between rural credit products and agricultural insurance products.Throughout the paper, it takes the sustainable development as the clue and discusses the model selection problem of rural financial institutions. Only after knowing the characteristics of the New Rural Financial Institutions and the existing problems, and finding out the factors affecting agricultural policy implement, can we come up with sustainable development models. The innovations of the paper are the following three points:Firstly, the paper systematically studied the effects of policy. It discusses the policy objectives, policy transmission process and transmission mechanism of the NRFI, and compared with the agricultural support effect of village banks, small loan companies and rural mutual cooperatives. Through empirical study found rural mutual cooperative has a better effect. Finally, this paper inquires into many factors which influence the system design of the NRFI. The existence of contradictions and conflicts in our system at present, has seriously affected the implementation of the relevant policy effect and objectives. In order to realize the sustainable development of NRFI, it can not retreat contradictions conflict level design of these systems.Secondly, one innovative research is the new type of rural financial institutions'direction of development, market positioning and development model selection. Overall planning for urban-rural development strategy in China and the reality of the new rural construction, supporting policy need to give attention to agriculture and the sustainable development of new type of rural financial institutions, this paper propose a market orientation of rural community micro financial institutions of new rural financial institutions to small and inclusive rural financial system, believing that the development of new type of rural financial institutions should adhere to the service of "agriculture, small, micro" and "characteristics, profitability, sustainable" business principlesThirdly, it considers that the future development of rural bank branches can select a center branch system or a holding company system mode for the sustainable development. Small loan companies can choose to become professional retailers or loan restructuring path for the development of village banks. Rural mutual cooperatives can choice multilateral cooperation in order to achieve sustainable development. Moreover, in the design of three types of sustainable development of new rural financial institutions and business strategy, it always adhere to support both of the policy of agriculture and sustainable development of the new rural financial institutions. |
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