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A Study On The Efficiency Of Agricultural Loans In The Perspective Of Pratt & Whitney Finance

Posted on:2017-01-31Degree:MasterType:Thesis
Country:ChinaCandidate:K Y FeiFull Text:PDF
GTID:2209330488496666Subject:Finance
Abstract/Summary:PDF Full Text Request
The Decision of the Central Committee of the Communist Party of China on Some Major Issues Concerning Comprehensively Deepening the Reform, which was adopted at the Third Plenary Session of the 18th Central Committee of the Communist Party of China, has proposed the ideas of developing inclusive finance and ensuring that the rural deposits of financial institutions are mainly used in agriculture and rural areas. In February 2015, for the development of inclusive finance, the CBRC made the decision of improving financial services in rural areas. It strives to achieve the goal that the increase of agriculture loans would be higher than the average increase of all loans. Besides, it aims to improve the efficiency and quality of the services of agriculture loans to ensure that the development of the rural entity economy would be supported effectively. Therefore, it is of theoretical and practical significance to consider whether accumulating or returning rural funds can be really effective to solve the issues of agriculture, farmers and rural areas. It is also important to study more about the allocation channels of the agriculture loans of financial institutions.This thesis analyses three aspects of the agriculture loans:its importance, services and statistical classifications. In this way, it elucidates the relationship between inclusive finance and the allocation efficiency of agriculture loans. In The Special Statistical System for Agriculture Loans, which was published in 2007, the statistical standards of agriculture loans are classified according to the different uses, areas and subjects. It corresponds to the perspectives of the vulnerable industries, zones and social groups in inclusive financial theory, so it could reflect the credit investment to the vulnerable category. On the basis of the theory and statistics, selecting Agricultural Bank of thirteen prefecture-level cities in Jiangsu Province as the study samples, this paper chooses the categorical measure of the agriculture loans of the domestic and foreign currency as the input variables. And because of the fact that the allocative efficiency of agriculture loans is helpful to improve the people’s well being and the development of agriculture and rural areas, the thesis also chooses the value added of the primary industry and the rural per capital cash income of each region as the output variables. It analyzes the DEA static efficiency (super efficiency) and dynamic efficiency (Malmquist index) and contrasts them with the gray correlation model. In this way, this paper studies the allocative efficiency of agriculture loans from the perspective of inclusive finance and analyzes the present situation and problems of the current allocative efficiency. The refined value, the frame of reference and the reason why the efficiency value is invalid are also discussed. The result shows that there is a sharp gap among the allocative efficiency of agriculture loans of Agricultural Bank of prefecture-level cities in Jiangsu Province. It forms a reverse development pattern. The technology investment to the agriculture loans of the vulnerable industries, zones and social groups in inclusive finance achieves a lot. However, if the impact of the technology progress is ignored, the overall utilization ability of the existing financial resources in Northern Jiangsu will still lag behind that in Southern and Central Jiangsu. Balancing the investment of agriculture loans to different classifications and focusing on supporting the vulnerable social groups and the credit of rural secondary and tertiary industries appropriately play an important role in promoting the development of inclusive finance. Therefore, in the process of improving the allocative efficiency of the agriculture loans of Jiangsu Branches of Agricultural Bank of China, Southern and Central Jiangsu should appropriately reduce the scale of investment and follow the loan policy which focuses on adjusting demands, but Northern Jiangsu should pay more attention to the adjustment of the internal structure. As a result, this paper puts forward several suggestions. First, the allocation system of regional agricultural loans ought to be established and improved. Second, the agriculture loans should be adjusted dynamically at regular intervals. Third, the new auxiliary financial service mode for agriculture loans needs to be carried out. Last but not least, the allocative efficiency of agriculture loans should be included in the indexes which are used to measure the development of inclusive finance.
Keywords/Search Tags:Agriculture loans, Allocative efficiency, Inclusive finance, Jiangsu Branches of Agricultural Bank of China
PDF Full Text Request
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