Rural Mortgage Financing: The Effectiveness Of The Guarantee Company And The Practice Of Chongqing

It is an important problem for the development of rural economy that how to get ridof the rural economic development funding constraints．And it also has been plagued byall levels of government. Mortgage-backed financing of rural assets provides ideas andapproaches to solve this problem. In many parts of our country have launched a ruralmortgage financing. However, due to legal and rural conditions constraints, many citiesare unable to effectively carry out. With the development of the rural economy and ruralfinancial reform, from the central government to local governments are increasinglyaware revitalize the dormant assets in rural areas, the injection of funds for ruraldevelopment is an important way to solve rural problems. In terms of policy, relaxedrestrictions on mortgage assets in rural areas, which can open up broad space for ruralasset-backed financing.In this paper, on the background of rural background mortgage-backed financing,with related rural finance theory and a wide range of data collection, the article analysisthe current situation and the reasons for Chongqing Rural financing difficulties from thedemand and supply side. Further, use game theory and mathematical models discuss therole of large-scale introduction of the guarantee company. Combined with the establishedpractice of Chongqing’s major agriculture-related guarantees, studied the mechanism ofoperation of agricultural security company, and analyzed the structure of countyguarantees to subsidiaries and guaranteed operating rationality problems. Finally,proposed related countermeasures.The main conclusions of the study: due to various causes Chongqing faced financingdifficulties in rural areas, the article believe that large-scale agricultural companies cansolve this issue. It can be run as the model of government establishing and marketoperation, and may solve the shortage of collateral and banks face higher risk of defaultproblem to some certain extent. Mathematical model found in pure market-orientedoperation, the small and micro lending is still difficult to effectively support. When thesecurity company involved in rural finance collateral, should also nurture the localagricultural industry, increase support for farmers in general risk. In the operation of thesecurity company, there may be many problems, such as incentives subsidiaries, riskcontrol, need to find a suitable model in constant exploration.The article concludes with some policy recommendations: Innovative rural financial product types, from improving the agricultural insurance system, foster rural assetvaluation markets, innovation enterprise cooperation to farmers to improve financialmarket structure. Foster agricultural industry, and carried out rural financial reforms fromthe demands. Let large third-party security agencies of administrative and marketcombined into the rural market. And standardize the role of government in the ruralfinancial market.