Inner Mongolia Financial Development In Pastoral Areas

June1,2011, the State Council issued a number of observations on the promotion of the pastoral areas of sound and fast development, the "opinions" pointed out that promote economic development in pastoral areas must be "to encourage the banking financial institutions and large pastoral areas of financial services efforts... to guide the banking financial institutions to increase service outlets in pastoral areas, especially in remote pastoral areas, eliminate the financial services of blank townships in pastoral areas to support the financing guarantee the development of pastoral areas of business."Area in Inner Mongolia, as the largest pastoral area of Chinese not only is an important border areas, but also national enclaves. So the pastoral areas of economic development is not only related to the stability of the Inner Mongolia Autonomous Region, the economic base, but also related to the national border security and national unity and common progress the cause. Finance as the core of modern economic development, play an important role in supporting economic development in pastoral areas is a key factor to solve the bottleneck of economic development in pastoral areas.Financial development is not only limited by the level of economic development, but also by the impact of the natural environment, social environment, people's economic behavior in the external environment. Pastoral areas of Inner Mongolia due to the level of economic development is lagging behind, and the natural environment is complex, higher risk of livestock production, pastoralists in the formation of a special consumer behavior in the production of long-term life, resulting in serious Inner Mongolia, pastoral areas of financial information asymmetries and duality significant and serious financial market information asymmetry phenomenon duality characteristics significantly, showing obvious monopoly with high interest rates sexual, financial supply in both quality and quantity are not meet the needs of " pasturing area animal husbandry and herder ", supply and demand contradiction is projecting, the particularity of financial market in pastoral areas of Inner Mongolia intensified the difficulty of the financial development.Before the founding of New China, the financial of Inner Mongolia's pastoral areas seriously lagging and very confusing. Since the founding of new China, especially from the reform and opening up Inner Mongolia's pastoral areas of financial and rapid development. In1996, the Inner Mongolia Autonomous Region started the rural financial reform, financial markets in pastoral areas have a higher level of adjustment and change:the reform of large state-owned commercial banks to gradually withdraw from the financial markets in pastoral areas; the policy financial functions of Chinese Agricultural Development Bank is shrinking and the financial support to pastoral areas is not enough; postal savings outlets distributed widely light weight savings loans, the pastoral areas of funding through the postal savings shift of District, adding to the pastoral areas of capital shortage; the slow development of rural commercial banks and the new rural financial institutions, credit unions become the pastoral areas of financial markets, animal husbandry and the main force. Fragment However, there are some problems in their own development, not only the number of agencies is decreasing, and there is a serious problem of excess liquidity, loan recovery rate is low and can not meet the financial needs of the pastoralists; Because of the high-cost and high loss ratio livestock insurance slow development of in recent years the emerging policy livestock insurance to play a positive role, but in insurance coverage, subsidies and financial needs to be improved.As a result of a pasturing area of Inner Mongolia financial market financial strength is limited, and by the formal financial can not meet the financial needs only through informal financial solutions. Informal finance, in the relief of their financing, financial demand diversification played a certain positive role, but due to its financial regulatory system, is not conducive to the stability of the financial market and the national macro-control objectives.Therefore, to improve the current situation of financial development of Inner Mongolia pasturing area, and promote financial market development of pasturing area, should to explore a road which not only accord with Inner Mongolia's economic condition, but also meet the special financial needs of the pasturing area, livestock farming and the herder. First of all we are should promote economic development, increase the infrastructure construction, strengthen animal husbandry's ability to resist the risk, improve the herder's organization and cooperation, ameliorate the external environment for the financial in pasturing area. Secondly, establish and perfect " the Trinity" pastoral financial service system, policy finance, cooperative finance and commercial finance define to the positioning, objects and scope, then strive to build a multi-level, a wide range of financial service system. Finally, the government should interfere the financial market to guide the development of private capital, improve the policy insurance system of livestock farming, and set up the fiduciary guaranty system in the pasturing area, to promote the stability and healthy of financial market in the Inner Mongolia's pasturing area.