The Study On The Rural Household Financing Behavior And The Supply Of The Rural Financial System

An economist has predicted that the issues of Agriculture, Farmer and Rural area will determine the fate of China in the 21st century. Finance is the core of the modern economy. It is also the major force in supporting the rural economic developmet. So, in order to solve the issues of Agriculture,Farmer and Rural area,the most key one is to erect a series of reasonable,efficient financial support. But, at present,our rural financial system has some problems,it is difficult to meet the demand of rural households. So,it is urgent to revise and perfect the rural financial system.With China's rural economic reform, the households have become the mainstay. A lot of financial needs have emerged in the rural market. However, at present, the rural financial system can't meet the demand of the households. Households'financial demands are restrained. The borrowing of rural households is a difficult issue in rural financial research. These results are useful to provide policy reference.At present, many domestic scholars have done some research on the rural finance, which focuses on the existing problems from the macroscopic aspect, on the contrary, there are very fewer from the microscopic aspect. Based on the features of peasent households'borrowing, this paper studies the features of farmers'financial needs and the rural financial market. It will have some significance for financial system to improve efficiency and perfect the supply of the rural financial system.This paper is divided into eight parts:The first chapter—The preface.This chapter introduces the background of choosing the theme and the significance of studying it. Meanwhile, it introduces the corresponding basic theories of finance. The second chapter—the theoretical basis for the research. The chapter gives the summary on the theory of rural credit and the rural households'behaviors.First it introduces the concept the farmers and the economic characteristic of the farmhold; Then it analyses the theory of Asymmetric Information and Incomplete Contract; At last, It introduces the financial system and financing concept. This chapter is the theoretical core of the paper.The third chapter—the analysis on the characteristics and the financing behavior of peasants. Based on the existing research, this chapter summarizes the practical financing behavior of Chinese farmers. Then analyses the reasons why farmers can not get the loan from the perspective of macroscopic and microscopic level.The characteristic of the financing behavior is :(1)The scale demand for loan is on rise;(2)They deeply rely on private debt market;(3)The period of the formal financial institutions lending is short;(4)The demand of financing for living purpose is rising;(5)The lending rate elasticity is relatively low;(6)Farmers are from relational financing to contracts financing;(7)The characteristic of the mortgage behavior.The fourth chapter—the financial supply of the rural household, from the aspects of the loan's supply.The fifth chapter—the article point. This part describes the main features of the peasants' borrowing behaviors from many aspects, including the general situation, the frequency, the interest rate and so on. At last, It gives out the conclusions about the rural households'financing behavior.The sixth chapter—the characteristics of rural financial system in foreign countries and their experience. This chapter describes the characteristics of rural financial system in developed and developing countries and what we will learn from the rural financial systems in these countries.The seventh chapter—according to discussion in previous chapters, puts forward some feasible proposals for establishing a multi-financial system to satisfy the financial needs of the peasants. The proposal including:to perfect the rural financial system according to different types of the farmers'demand, to develop and standard the informal financial system , in order to stimulate the demand of long period and large scale financial need,Land-Financing Syetem is needed etc.The eighth chapter—the concluding part of the article. This chapter makes a summary about the whole paper,indicating the depth of the research.