Research On Financial Products’ Supply Of Rural Consumption Credit

With the gradual improvement of the farmers’ income in our country, the farmershave a stronger willingness of spending and ability of consumption. An important wayto realize the willingness and ability is through consumer credit. Consumer creditplays a key role in expanding consumer market and building a socialist countryside inour country. But, our country rural consumer credit market has serious failure.Farmers have a strong will and demand for consumer credit. China’s current ruralconsumer credit supply situation is not optimistic. According to related data,consumer credit gap from the formal financial institution in rural areas is more than3trillion Yuan. How to expand rural consumer credit supply has become a problem tobe solved.This thesis mainly adopts the combination of theoretical analysis and empiricalanalysis, qualitative analysis combined with game theory method, integrated thetheory and practice. Based on the analysis of the situation of the rural consumer creditdifficulty, this paper tries to find out why financial products supply relating to therural consumer credit cannot meet demand. Through the analysis of dynamic gamemodel, this paper points out the path selection of how to increase financial productssupply of rural consumer credit.In relevant basic theory research, this article first introduces the theory related tocredit and the theory related to financial products. Theory related to credit includesconsumer credit theory, the theory of credit rationing and credit theory of the Internet.Financial products involves in the theory of information asymmetry theory, securedloan theory and the theory of financial innovation. In the second part，this paperanalyzes the situation of rural residents’ income growth in China and the ruralconsumer credit situation, points out that the rural consumption demand for credit isfar from being satisfied, and through the dynamic game model analyses whyconsumer credit financial products supply cannot meet demand, the reasons includepoor rural credit environment, single guarantee model, lack of product categories. Thethird part probes into the path of increasing financial products supply, includingimproving ecological environment, perfect consumer credit guarantee model, andinnovative products. After that, this paper analyzes two successful cases, respectivelyare the Shouguang agricultural land mortgage and Sihong small credit loans. This paper then analyses agricultural land mortgage on the level of institutional economics.In the end, the paper makes a summary, and forecast that as the improvement ofChina’s rural financial ecological environment, the rural consumer credit market inChina will realize the integration with urban consumption credit market.Finally, this paper concluded that to enlarge the rural consumer credit market inour country, financial products supply must be increased. The path of financialproducts supply is to make a good rural financial ecological environment, build agood credit system; To guarantee mode innovation, within the scope of the law thefree circulation land, forest land should be allowed; The kind of financial productsmust be innovated to meet the diversified needs of the farmers; Even at the same timethe external environment of rural consumer credit financial product should beimproved.