Study On Efficiency Evaluation Of Rural Financial Market In West China

The CBRC has adjusted the market access policy of banking and financial institutions inrural areas since the year of2006. After6years of exploration and practice, the new ruralfinancial institutions, including Town and Village Banks, Small-loan Companies, Rural CreditUnion Funds, have a rapid expansion and development, and the number of new rural financialinstitutions in the central and western regions accounts for60%of the whole country. Theestablishment of new rural financial institutions further activates the vitality of private capitalin Western region, and promotes establishing the rural financial system with multi-agent,sufficient competition and various ownerships. With the openness of the rural financial market,rural financial market’s capital supply function is further improved, but still weak, requiringto further improve the openness and efficiency of the rural financial market, and to inprovethe function of allocation of rural financial resources, with the purpose of balancing nationalrural financial market development.Shaanxi and Ningxia are the provinces introduced new rural financial institutions in lessdeveloped regions in China in the earlier time. The rural financial markets of Shaanxi andNingxia is experiencing the transform from the traditional rural financial patten to theaccelerated market-oriented patten.The dissertation chooses the rural financial marketeffiency in Shaanxi and Ningxia as the research objective to promoting the formulation andimplementation of market access policy, to continuing to push forward the openness of ruralfinancial market and the reform of policy formulation and implementation.Based on the above research background and current situation, the dissertation take heShaanxi and Ningxia rural financial market effiency in the areas introduced new ruralfinancial institutions as the research objective,make full use of finance, micro-econimics andfinancial function theory and so on,building rucal financial market effiency indicator system,including both micro-supply,micro-demand and macro-effiency,using the mathods of casestudy,DEA model,Slogit model,logit model and the Wurgler model of capital allocationefficiency Function Theory to accurately measure rural financial market effiency in westChina.Based on the analysis, operable policy and suggestion for promoting the rural financialmarket effiency is proposed. According to this logit, the content of this dissertation is as following:Chapter1: Introduction.This chapter mainly elaborates the background, significance,domestic and foreign research situation, research ideas, methods and the possible innovationof the dissertation.Chapter2: Analysis on the connotation of the rural financial market effiency.Thedefinition of “maro-effiency” and “micro-effiency” about rucal financial market is defined.Relationship between rural economy and rural financial markets is analyzed.And the conceptof western rural financial market efficiency is defined.Chapter3：Analysis on rural financial market supply operating efficiency.The ruralfinancial market supply efficiency in west China is analyzed. Firstly, three main providers inwestern rural financial market are introduced,and then development of new rural financialinstitutions is described and the typical ones are introduced.Finally using DEA model, thenew rural financial institutions operating efficiency in Shaanxi and Ningxia is analyzed,andthe lack of returns to scale is the main reason that cause inefficience of some of the main ruralfinancial institutions.Chapter4：Analysis on the influence factors and differences about farmers willingness torural financial institutions loans. Using Slogit and Logit model to study farmers’ creditbehavior, willingness to loans and credit constraints as well as the differences betweendifferent income levels and part-time production type, the results show that credit behaviorsof low-middle-income farmers are still in a conservative state and their financial preference isviscous, and that high income and non-agricultural farmers are the active selectors of creditinstitutions. Multi-level products and credit policy are proposed based on the empiricalanalysis.Chapter5: Comprehensive evaluation of rural financial market efficiency in westernregion. With the perspective of macro connotation of the rural financial market efficiency, themacro service and capital allocation efficiency in new rural financial institutions introducedareas is analyzed.Using Wurgler efficiency capital allocation model to estimate the capitalallocation efficiency of nine counties of the western region, the result shows five counties’rural capital allocation efficiency is efficient.Using DEA model to measure of financialservices efficiency five western counties in2012and2011,the results show that the financialservices efficiency of some of the counties is non-DEA effective, mainly due to the capitalinvestment redundancy and management efficiency lose.Chapter6: Policy and recommendations enhancing rural financial market efficiency inwest China.According to the empirical analysis on micro supply, demand and rural financialmarket efficiency, three aspects of policy and recommendations are proposed in order to meet the farmers credit demand, improve the efficiency of new rural financial institutions as well asrural financial markets.