Research Concerning Rural Finance Serving Agriculture In Less-Developed Regions

The unequal distribution of our rural financial resources, limited service level, and severely weakened supporting role in our rural financial institutions contribute to the long-time existence of the rural economic development fund bottleneck. And the reasons and reflections are as follows. In the first place, the rural financial organization’s shrinkage and exit formed the situation that the credit cooperation serves agriculture alone, which sharpened the contradiction between the rural capital market supply and demand. And it reflects mainly in these aspects. First, the agricultural development bank, the policy financial institution, object changing its financial launch into the market, making some local agricultural infrastructure construction and development policy in accordance with our local policy can’t get credit support. Second, some state-owned commercial banks overemphasize on capital management, and unity, monetary policy focus on large and medium sized cities and developed regions, especially ICBC and agriculture bank both shrank their township organization. In the second place, the high demand of agricultural industrialization funds lead to the situation that’A credit cooperation alone support agriculture with difficulty’. Besides, rural capital flowed out severely, plus state-owned commercial banks absorb more deposits, but less input, making our fragile, exclusive agribusiness situation worse. In the third place, strict management system of credit and high credit affect agricultural credit investment. Meanwhile, agriculture as vulnerable industry, with many uncertain factors, once accompanied by natural disasters, its harvest would be deeply affected, coupled with traditional high defective rate, these factors undoubtedly influence and frustrate the enthusiasm of financial institutions. Lastly not fully gasping the credit policy has a negative effect on its supporting role. As a new. policy aiming at increasing rural farmers capital input, while it helps relieve the difficulty in getting loans, its doesn’t be fully push ahead with, as well as realization, policy mater deviation and short of flexible use of policy. Problems above reflect in the following aspects. First, the credit extension officer think that a small deal of credit covers wide, costs more but the interest rate in low. Additionally, the rating of farmers’ credit is too strict for some farmers in poor economic condition can’t get credit support. Lastly, the system is conservative, and limited in thinking and understanding, but not jumping out of its original small circle.This paper can be divided into five parts in total. Chapter1talks about the research background and analysis frame work, and chapter2introduces financial service situation in less-developed areas. Then, makes an analysis of the financial service problems in JianHu county. Besides, chapter3concentrates on the rural financial service in less-developed areas. Last but not least, service strategies and suggestions on these above are also given in chapter4.