The Research Of Rural Financial Demand And Supply In Tongliao City

In recent years, Tongliao City has been committed to become afinancial ecological model city, not only formed a relatively perfect system offinancial supply, but also promoted the economic development of TongliaoCity. But if you want to realize the synchronous development of urban andrural areas of Tongliao City, you could not ignore the economic developmentof the rural and pastoral areas in Tongliao City. Therefore this paper mainly isthe study of rural financial market of Tongliao City, hoping to provide somesuggestions for the good development of the rural finance of Tongliao City.First, we divided the parts of the rural financial markets, mainly by thesubjects of financial demand, financial supply as well as regulatory authorities.Then the author divided the subject of rural financial demand of Tongliao Cityinto three types of farmers and herdsmen, the county enterprises and thecounty government.According to the income level of farmers and herdsmen,they can be divided into poor, subsistent and producible farmers andherdsmen. Divided by the size of the enterprise scale, the county enterprisesare divided into small and medium-sized enterprises and leading enterprises.We more carefully divide the different demands in order that we can moreclearly analyze diversification of financial services. According to the differentsubjects, we can carry out the different financial services to meet the needs ofthe financial demand subject better. The subject of rural financial supply ofTongliao City mainly can be divided into two categories, namely the formaland non-formal financial institutions. Formal financial institutions includepolicy banks, commercial banks, cooperative financial institutions and newtypes of rural financial institutions.After having a clear understanding of the present situation of ruralfinancial demand and supply of Tongliao City, we further find out the reasons for the imbalance between supply and demand of Tongliao City, mainly fromtwo aspects of reasons. On the one hand, the reasons of the supply problemsare that support of agriculture policy banks is insufficient, commercial bankshave weaken functions,cooperative financial institution have vague definitionand the development of non-formal financial is in confusion. In addition thecause of these problems is the weak nature of agriculture, and the nature offinancial institutions to avoid the risk, and the asymmetry information, andhigh threshold formal finance, and the advantages of private financialinstitution and so on. On the other hand, the result of the demand side firstlyis suppressed demand. Rural financial needs are not being met and the fundsare not in place.Therefore this can affect the rapid development of the ruraleconomy, and then affecting the income of peasants and herdsmen. The lowlevel of income will reduce the lending will of financial institutions. Thatcreated a vicious cycle of lack of demand. Secondly, the self-sufficiencycharacteristics of the rural economy and the lack of guaranty, and otherreasons, will affect the demand can be met.Any things cannot be separated from other substances, and developindependently. Therefore, in order to improve the development of the ruralfinance of Tongliao city, we must learn from the successful experience ofother regions. In this paper, the successful experience of the developed anddeveloping countries is cited. The author wanted to bring some inspiration torural financial development of Tongliao city. After summarizing theexperience of others, we must combine with Tongliao City’s owndevelopment situation. Next to formulate some realistic and practicalmeasures. Based on the above analysis, the author proposed countermeasuresrespectively from the perspective of financial supply and demand, includingstrengthening support of agriculture policy banks, improving theagriculture-related proportion of commercial banks, defining the positionof cooperative financial institution, regulating the development of non-formalfinancial institution; developing agricultural economy, establishing theguarantee system of chattel mortgage. In addition, from perspective of perfect insurance system and the law and norm, put forward countermeasures toimprove the development of rural finance in Tongliao city.