A Study On The Relationship Of Rural Credit And Rural Economics Development Of Hunan

"Agriculture, rural areas and farmers"is a big problem relating to the development of economy and society in our country, and rural finance is an important factor deciding the development of rural economy. Hunan is a big agricultural province that has much rural population, to promote rural economic development of Hunan, we must pay attention to and develop rural finance of Hunan. The symbols that measure the degree of financial development in rural areas not only depends on the size of rural credit, but also depends on the efficiency of rural credit funds.This article based on the current situation of rural areas of Hunan to study the efficiency of rural credit in promoting the development of rural economy of Hunan. Firstly, discussed the meaning of rural credit and the efficiency of rural credit, character, principle, and the theories about rural credit promoting the development of rural economy. Second, analyzed the status of rural credit in Hunan, knew the overall situation of rural credit in Hunan and various conditions of rural financial institutions supporting agriculture, and analyzed the problems of rural credit: the total quantity of rural credit is inadequate; rural savings and loan disorder; massive outflow of rural funds; a lot of contradictions in the process of promoting agriculture in rural credit cooperatives; irrational allocation of credit funds in rural areas; high monopoly in rural credit markets and so on. And analyzed the reasons. Again, both qualitative and quantitative analysis verified that it has a certain efficiency that rural credit promoted the rural economy in Hunan, but the efficiency was low. Finally, according to these problems, put forward five-point proposal to improve the efficiency of rural credit promoting rural economy of Hunan.There are three opinions that belonged to myself in this article: First, made a new definition of the efficiency of rural credit funds. Second, used large amounts of data and empirical analysis, made an initial and detailed analysis to the efficiency of rural credit funds in Hunan Province. Third, based on the weak agricultural characteristics, put forward a compensation mechanism for disaster credit measures.