The Research Of Efficiency Evaluation Of Agricultural Loans And Influencing Factors Of Rural Credit Cooperatives

Rural credit cooperatives are the main forces in the formal rural finance, theprincipal parts in granting agricultural loan, and the main parts in contacting farmers.Agricultural loan is not only one of the core businesses of rural credit cooperatives,but also the core way for agricultural finance to be effective. The efficiency ofagricultural loan not only exerts a direct impact on the operating condition of ruralcredit cooperatives, but also determines their future. The efficiency of agriculturalloan indirectly reflects the agricultural economy, as well as the development of thenational economy. In this context, from the perspective of agricultural loan businessof rural credit cooperatives, this paper chooses DEA method and panel data model toconduct a research on the efficiency of agricultural loan of rural credit cooperativesand its influencing factors based on the datum of nine Changde City, Hunan RuralCredit Cooperatives from2006to2012.Firstly, from the perspective of input and output, this paper conducted acomparative analysis on the efficiency of each rural credit cooperative’s agriculturalloan. The results found that the scale efficiency was the major factor affecting theoverall efficiency of agricultural loan. In addition, technical setbacks mainly causedthe decline in total factor productivity of the business.Secondly, from the perspective of the process of agricultural loan business, thisarticle studied the efficiency of agricultural loan of rural credit cooperatives indifferent stage. The paper found that the efficiency in fund-raising phase exerted alarger impact on the overall efficiency, compared to that in loan-granting phase.Besides, the overall efficiency of each stage was mainly determined by its puretechnical efficiency.Thirdly, the paper used panel data model to investigate the effects which the capitalstructure of rural credit cooperatives brought to the efficiency of agricultural loan.Based on the results evaluated by Malmquist-DEA method, the study found that theproportion of household loan and business tax rate had a significant impact on theoverall efficiency of agricultural loan. Interest expense ratio and NPL ratio had anegative impact on the overall efficiency of agricultural loan, and savings rate had apositive impact. Based on the results calculated by two-stage DEA method, theresearch found that business tax rate and interest had little effect on the overall efficiency of agricultural loan. The rate of non-performing loan and loan that wasgranted to farmers had a negative impact on the overall comprehensive efficiency andthe overall efficiency of fund-raising stage. In the loan-granting phase,non-performing loan ratio also had a negative impact on its overall efficiency. Savingsrate had a positive impact on both the overall comprehensive efficiency and theoverall efficiency of fund-raising stage, and a negative impact on the overallefficiency of loan-granting stage. But the negative impact was weaker than thepositive impact.