Study On China's Rural Credit Based On Information Asymmetry

Issues concerning "agriculture, countryside and farmers" have always been big problems in the process of China's economic reform and development. Only then solve issues concerning "agriculture, countryside and farmers", the Chinese economy long-time steady progression can have the safeguard, the Chinese demands leading economic type can have the solid foundation. Core of issues concerning "agriculture, countryside and farmers" is farmers'slowly growing income. At present, one of primary factors which restrict the rural economic development and the farmers' income level enhance is the rural finance deficiency. Difficulty in farmers obtaining loans, the countryside capital seriously outflows and so on were the concrete manifestation on rural finance market; the fund shortage has become "the bottleneck" of rural economic development and farmer additionally receiving. Therefore, study the reasons why farmers'loan difficulty, as well as how to consummate the rural finance system,solving the countryside credit insufficient problem, has become questions that we must face in the process of building new socialist countryside.There are many researches about rural finance in both domestic and foreign literatures, most literatures analysis on the viewpoint of finance repression and financial depending. The author thinks that the primary cause of countryside credit insufficient lied in the countryside credit market serious information asymmetry, to analyze the reason why the countryside credit insufficient as well as how to overcome this kind of information asymmetry, increases the countryside credit supplies will be the key in this paper.The author thinks that China's rural credit question research should establish on the information asymmetrical foundation, therefore this paper rests on such mentality to divide into the following five parts roughly:The first part, the introduction first introduces this paper's topic background, the research content and the method, next are the domestic and foreign research present situation about China's rural credit.The second part, the author establishes China's rural credit market model is based on the information asymmetry, analyzes that information asymmetry creates the adverse selection effect and the moral hazard cause the countryside credit market present the credit rationing phenomenon.The third part, separately analyses on China's rural credit's supply and demand side, through the quantitative analysis and empirical analysis, obtains China's rural credit market is disequilibrium, then analyses on its reasons.The fourth part, introduces the meaning of microfinance as well as the operational mechanism, how to overcome the information asymmetry through the technology and the institutional innovations.The fifth part puts forward some constructive policy suggestions in view of according to Chinese national conditionsThe author believes that introducing the information asymmetry theory to the research on our rural credit, not only has strong theory significance, but also has the vital practical significance to our rural finance reform.