An Analysis Of The Imbalance Between Supply And Demand Of Peasant Households’ Credit In Henan Province

"Agriculture, the rural development progress and farmers’income" is the major problem related to China’s economic and social development and modernization. As "the first agricultural province" and "the most populous province","Three Rural Issues" in Henan province is even more focused and serious. Peasant households are the basic cells in the rural economy society, so the improvement of farmers’income level is the key point to solve "Three Rural Issues". Along with the marketization reform, some peasant households are no longer satisfied with survival need. Their lending demand is increasing. But for a long time, the reform of our country’s rural financial market is arranged as a kind of "top-down" system, which has produced the phenomenon that financial service supply can’t match with the farmers’actual lending requirements.Through a sampling survey to300peasant households of three cities in the traditional agricultural province----Henan province, we can found:the farmers’ lending demand is strongly and the main channel of peasant household credit is private finance; different income levels of peasant households have different credit use and the peasant households’credit deadline needs some flexibility. According to the empirical analysis about the influence factors to affect farmers to participate in regular financial lending intend by Binary Logistic model, the measurement result shows that: educational level, the number of family members, income level of farmers, the situation of farmers’knowing on loan of policy, loan interest and whether the regulation of the loan period is reasonable or not are affecting significantly to the condition of participating in regular financial lending. Throughout the current rural financial supply situation in Henan province, a relatively complete financial supply system has formed which including policy finance, commercial finance, cooperative finance and new financial institution. In addition, there are some non-formal financial organizations and individuals are also providers of rural financial market. After the comprehensive analysis in the farmers’credit demand, the imbalance can be found that exists between the supply and demand in total and structural. The deep seated reasons of this imbalance mainly include the financial dualism system and the deficiency of formal financial function.Therefore, in order to improve the imbalance between supply and demand of peasant household credit, we must find the solutions from the current situation of both sides of supply and demand:(1) adjusting peasant household credit demand: constructing rural insurance and social security system, establishing and improving the mortgage guarantee mechanism of peasant household credit, enhancing the cultural level of peasant household, and promoting the farmers’financial cognition;(2) adjusting peasant household credit supply:being adapted to the different demand of peasant household credit, innovating the model of peasant household credit, promoting rural financial market reform, cultivating competitive rural financial market, regulating the private finance and implementing classified guidance.