Urban And Rural Credit Resources Allocation Research In China

Credit resources play an extremely important role in our country’s national economy. It is also the main source of funds to enterprises. Scientific credit resources allocation is the effective control lever to construct reasonable economic structure and healthy economic development. So the quality of credit resources allocation will undoubtedly produce great effect to our country economic development. Levine (1997), Lance and Huttenback (1982) considered that optimizing the allocation of resources is one of the basic functions of a bank, but from a global perspective, credit rationing is widely exists. At the end of 2009. China’s financial institutions loans reached 39968.5 billion; it played a dominant position in our country’s financial resource. This indicates that the bank’s credit resource allocation plays a decisive role in the position, all these factors make how effective and scientific allocate credit resources become an exact study to solve problem.Coordinate urban and rural development is a new trend, new contradiction, new challenge, new opportunity under correctly grasp of our country’s new stage of economic and social development, and also based on the following of economic society’s development law. It has strong times character, innovation character and opposite character, has very important strategy sense. Through data analysis found that urban and rural per capital income ratio is from the year of 1985’s one point nine to the year of 2009’s three point three, and also has the tendency of expanding. This shows that, China’s urban-rural gap still revising a great gap.In the current central, our country’s central government has being paid great attention to coordinate urban and rural development. Under the realistic background, this article will make research on the credit resources allocation from the perspective of coordination urban and rural development. This article’s purpose is to provide theoretical and empirical support to promoting the development of rural economy, narrowing the gap between urban and rural areas, and promoting the urban-rural integration process. Through analyzing current research, founding that:in recent years there having been a lot about the allocation of rural credit funds performance issues, but rural economics and farmer income level seldom improved, still existed imbalance of supply and demand in rural. Therefore, only by establishing a scientific and reasonable credit resource allocation performance evaluation system can solve the problem of unbalance of credit resource allocation better. This paper used of our country’s relative data from the year of 1981 to 2009 to analyze, based on the construction theory analysis framework. Through DEA model analysis found that our country’s city and rural credit resource allocation efficiency is low; through Tobit model to analyze the reasons of this low efficiency. And on this basis, we also had put forward to suggestions.A. Research conclusionsa. From the year of 1981 to 2009, urban and rural credit resources allocation’s pure technical, scale efficiency and technical efficiency are all low. During these 29 years, in the whole these three kinds of efficiency value had present unstable condition, existing fluctuations.b. Urban and rural credit resources allocation’pure technical efficiency had correlation with the status of urban and rural financial market development. Urban and rural financial market development level and credit resources allocation’s efficiency existed negative correlation.c. Urban and rural credit resources allocation s pure technical efficiency had relationship with urban and rural economic development. Urban and rural economic development level and credit resources allocation’s efficiency existed negative correlation.d. Urban and rural credit resources allocation pure technical efficiency and urban-rural dualistic economic structure had relationship. Urban-rural credit resource allocation efficiency and urban-rural dualistic economic structure existed positive correlation relationship.e. Urban and rural credit resources allocation’s pure technical efficiency had relationship with financial institutions’ human resources. Urban and rural credit resources allocation’s pure technical efficiency and financial institutions" human resources existed negative correlation relationship.B. Policy RecommendationsCombined with the above factors as well as our country’s urban and rural economy development situation, this paper through the below aspects to provide policy recommendations.a. Perfecting rural financial market to coordinate urban and rural credit resources collocation. Urban and rural financial market development scale and urban-rural credit resources collocate efficiency existed negative correlation, but urban-rural credit resources allocate efficiency and urban-rural financial market transaction efficiency existed positive relation. These showed that urban and rural financial environment had very bit difference.b. Strengthening the government function, guiding reasonably flow with credit resources. Agriculture is a high risk, easy volatility and weak market competition ability industry. It is to meet human basic needs of food and clothing, health and safety. Due to the rural credit resources’ large outflow and financial institutions’ profit hobby, our country should strengthen the government’s lead function to shorten urban-rural gap.c. Developing rural human resources to coordinate urban-rural human resources. Through analysis found that human resources had great influence to urban-rural credit resources allocation efficiency, but urban human resources is more than the rural. So we should develop rural human resources.d. Reforming urban-rural dualistic economic structure to improve urban-rural economic environment. Because of our country had sacrificed rural and farmers’ profit to develop industrial for a long term, making rural can’t get due investment. This caused urban and rural economic development imbalance. The integration of urban and rural is a long-term process, we couldn’t eliminate this gap in short-term.e. Strengthening credit resources supervision to improve its using efficiency. Pursuing of maximal profit is the goal of commercial bank management. In order to achieve this goal, they must have the following basic conditions:one is good quality of assets; the two is running in the right way. From analysis found that, the rural is existing credit resources outflow phenomenon. So supervision agencies should increase the allocation of credit resources supervision, restrain rural credit resources outflow phenomenon, and make rural and agriculture to be able to obtain the required credit resources.f. Strengthening rural and agricultural credit resources attraction to expand demand of credit resources. Through analysis found that, credit resources as a kind of special commodity, rural areas demanding desire of it is very strong, but the effective demand of it is insufficient. Due to the rural areas have relatively fragile agriculture and backward rural economy, compared with urban areas. This makes the rural areas lack sufficient capacity to achieve credit resources. So we should strengthen rural and agricultural credit resources attraction to expand demand of credit resources.