A Study Of Rural Credit Of Rural Credit Cooperative

Hu Jintao, which is General Secretary of the Communist Party of China, in the report of the Seventeenth Party Congress pointed out:"address agriculture, rural areas and farmers, concerning the overall situation of building a moderately prosperous society, must always be the most important task as a party." Entering the21st century, especially since the is the accession to the WTO after China’s agricultural and rural development has entered a new historical stage, with the continuous progress of the new rural development, rural finance, whether in the quantity of credit or financial services are made in the newer and higher requirements.With four state-owned commercial banks commercial reformed, its agencies to withdraw gradually from rural areas. Rural credit cooperatives (hereinafter referred to as "RCC") has the most important force of Chinese rural financial system since. It has played a decisive role in supporting farmers, agriculture and rural economic development. Rural credit cooperatives related to the credit support for agriculture income of farmers, agricultural development and rural economic growth. It is also an important part of ways to improve the overall level of development of an important part.This article selects Bozhou City as the sample area. I analyze the behavior of supporting agriculture by the credit which is supplied by rural credit cooperatives of Bozhou in recent years. I also investigated the relationship between credit supplied by RCC and economic growth, as well as between credit supplied by RCC and the income of the farmers. I wish RCC can further enhance its support for agriculture in rural credit cooperatives services and play a greater role in agriculture in the new period.The article first outlines and analyzes the economic growth and financial development theories. And then based on the analysis of the demand for credit in Bozhou-’s rural financial markets at this stage, I investigate and evaluate the situation of credit supplying of RCC in rural areas of Bozhou. By using quantitative analysis and empirical testing, I establish econometric models, and investigate the situation which the credit supplied by RCC support the agricultural economy and farmers income growth. By demonstration analysis, I reach:in recent years, rural credit services of Bozhou’s RCC insisted supporting "three rural" from the scale point of view, and its credit support for agriculture has intensified; but I view from the structural point, RCC mainly support farmers.Its loans supported to the development of agricultural industrialization is not enough. RCC’s credit support to promote the growth of Bozhou’s agricultural economy, and played a direct role in promoting income of farmers. Thus concluded the end of the article, I give some policy suggestion which is about RCC further enhance support for agriculture services, and play a greater role in agriculture.