The Innovative Research On The Credit Products Of Rural Bank In China

Country banks are the main force of the rural financial institutions, it is a newpattern of financial institutions which serves for the rural areas and farmers. It is saidthat the development of country banks not only have effects on its own operatingperformance but also affect the economic development and industrial transformationof rural areas, so as the level of peasant’s welfare. The strength of supporting farmerswould not have been sufficient enough due to the country banks just developed inrecent years. Countering the fact that the species of credit products is insufficient,single and lack of innovation, so that it cannot fit the credit requirement in rural areas.The progress of country banks’ business need to adjust rural areas and innovate itsown credit products then adapt the economic progress and transformation of creditrequirement in rural areas, ensure its own sustainable to provide lasting and powerfulally.This paper introduces the theories firstly, teasing out both financial productinnovation and banking product innovation. Then analysis the credit productinnovation of village banks. Promoting the rural banks’ innovation of credit productby borrowing foreign village banks. Choosing the route of product innovation byanalyzing the realistic basis and innovative principle of village banks’ credit productthen put forward co-guarantee loan and supply chain financing as the two forms ofinnovation. According to the author’s research in the rural areas, combined with thelocal farmers demand situation, the existing problems and credit products, adjustmeasures to local conditions, in the two aspects of animal husbandry and plantingindustry to consider the credit product innovation, and to design the credit products. Inorder to promote rural bank credit product innovation research, inside the villageBanks, to strengthen the internal risk management, pay attention to introduction andtraining of talents, and vigorously expand funding sources; Externally, perfect thefinancial supervision, intensify policy support, improve the rural credit guaranteemechanism, the development of agricultural insurance, to strengthen the constructionof credit system, to create a good rural financial environment.