A Study On The Development Of Private Borrowing And Lending In The Western Rural Regions

Known as the financial core of the modern economy, but there is a serious lack of formal financial in the vast western rural areas. Basically, state-owned commercial banks have out of the loan market of the western rural areas, Rural Credit Cooperative have a clear tendency of "Away from agriculture" in pursuit of profit maximization. Therefore, many financial demands of the western rural areas go to the private borrowing and lending.While private borrowing and lending has played a positive role in lessening the capital scarcity and promoting the economic development of the western rural areas, it has brought about some problems. Therefore, we must profoundly realize the double edge of the nongovernmental credit, well develops its advantage, eliminates its adverse effect, and thus impels the western rural areas of Chinese economy better and better.The first part of this article full summarizes the development of private borrowing and lending in the western rural areas. Part II we analyze the reasons for the existence of private lending in the western rural areas from both the intrinsic and extrinsic motivation. Part III we analyze the impact of private borrowing and lending to the Western Rural Economy both on positive and negative respects. Part IV we analyze the United States, Japan, China Taiwan and Wenzhou and other countries and regions of private borrowing and lending experience. Part V, based on the above analysis, combined with the actual situation of the western rural areas, we make some proposals of community-based approach to the development of community cooperative financial; Increase the financial arrangements for the western rural areas, to encourage orderly competition; Sound private borrowing and lending rules and regulations, Speed up the construction of the financial legal system; Introduce an insurance mechanism to provide a credit protection for private borrowing and lending, Intensify the supervision and management of private borrowing and lending. In order to rule the development of the western rural private borrowing and lending, to give full play to the positive effects, to avoid its negative factors.