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The Western Region Of Inclusive Rural Financial System

Posted on:2011-10-24Degree:MasterType:Thesis
Country:ChinaCandidate:T D ZhangFull Text:PDF
GTID:2199360308971760Subject:Finance
Abstract/Summary:PDF Full Text Request
GSP, Generalized System of Preferences, which put forward by the Argentine economist Charles Role ? Prairie for the first time with its initial purpose to help the developing countries in weak position get more concessions in international trade. The United Nations'"Year of Micro credit"first introduces the concept of GSP into financial system in 2005. It proposed to build an inclusive financial system, which include low-income and poor groups, make them benefit from economic development and social progress. As an important part of poor and vulnerable groups, agriculture, rural areas and farmers have been subject to the party and state concern and attention. Since 2004, the central government introduced seven "Central Document No. 1" make recommendations on rural financial services from different angles. The CBRC issued consecutive regulatory documents guiding the rural financial services in 2008. But through the specific analysis on rural financial system status of the western provinces, the existing rural financial systems still have many problems. This paper reference the financial system's frame theory, study the status of financial system in poor and rural areas from financial needs, rural financial services, rural financial infrastructures and related services as well as government incentives regulations for rural financial services. Date interview find that the current western inclusive rural financial system still have following deficiencies. Firstly, customer level: the financial dualism problem in rural areas, financing of rural small and mediums-sized enterprise. Secondly, level of financial service providers: Agricultural Development Bank of lack of legal protection and too single investment, heavy historical burden for Rural credit cooperatives and property rights problems, Postal savings bank face the dilemma of commercialize, too high threshold for new-type rural financial institutions and the finance problem of small loan company, slow development of agricultural insurance. Thirdly, infrastructure level: payment and settlement services to be improved, farmers and small and medium-sized enterprise credit information system are not perfect, scarce collateral in rural financial market. Fourthly, Government's macro-level problems: lack of government's macroeconomic incentives, interest rate ceilings are still more stringent, tax incentives have not been implemented, the absence of agricultural micro-insurance subsidies, new rural financial institutions still under strict supervision. Meanwhile, by the use of statistical software SPSS13.0 and factor analysis, compared and ranked the western provinces according to different indicators on the current situation of the rural financial system. Analysis result indicate that to establish inclusive rural financial system in western China still faced challenges from size, depth and cost-effectiveness. Firstly of all, to be able to provide high-quality diversified financial services for the majority of farmers and rural small and medium enterprises. Secondly, financial services continue to lower the threshold to expand its coverage. Thirdly, institutions themselves be able to realize its sustainable development. To solve these problems, this paper proposes policy recommendations on how to develop inclusive rural financial system in western poor areas of China. First of all, make it clear what the main rural financial needs to meet increasingly diversified financial needs; second, reform traditional financial institutions, focus on the development of rural micro-credit, improve the agricultural insurance; develop the credit guarantee mechanism, the rural credit system, rural payment environment, strengthen financial education and other aspects of credit environment to foster a competitive financial markets to create a favorable external policy environment; additionally, build a multi-level supervision, implement a different, incentive regulatory mechanism. Set up a registered management for micro-credit organizations and establish deposit insurance system in rural financial system in order to improve the existing regulation system.
Keywords/Search Tags:inclusive finance, rural finance, financial supply, infrastructure and service, financial regulation
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