The Research On Rural Finance Risk Sharing And Compensation Question In Heilongjiang Province

The rural finance risk in Heilongjiang province is lack of effective risk sharing and compensation which hinder the development of rural finance service and slow down the rural economic development. Although national policy attach importance to agricultural issues, the rural financial transaction is still inefficient caused by the lack of rural financial transaction condition, further leads to long-term insufficiency to rural finance supply. Plenty of financial institution quit rural finance market and intensified non-agricultural trend, which lead to rural risks gathers caused by unused of rural finance function. So the crucial question of rural finance development is to construct risk sharing and compensation mechanism.In this paper, according from pose issues to analyze matter, then solve question and propose the measures to improve rural finance risk sharing and compensation of Heilongjiang province. In method, mainly using literature and data chart analysis of the status quo, using the game theory analysis perfect risk sharing and compensation for rural finance strategy, then combined with related theory support for proposing measures.Thorough risk sharing and compensation can accelerate the desperation of risk, reduce transaction cost, boost constant expanding of rural financial transaction, speed up the concentration, flow, distribution and redistribution of the fund to promote the development of rural economy. In this paper, at first, the author defines the relevant concepts to rural financial risk sharing and compensation of Heilongjiang province, states the related theories of financial development theory and risk sharing and compensation theory and rural financial theory. Then analyzes the rural finance risk sharing and compensation status quo and existed problem, and current situation and problem of institutional environmental from agricultural insurance, security guarantees, informal and government finance of Heilongjiang province with the usage of data graphs, which presents in the following parts:first, the high frequency and randomness of natural risk, defective agricultural insurance market and product. Second, agricultural product risk leads to the frequent fluctuation of agricultural product price, which affects produce price index of agricultural products and farmers’per capita income. Third, asymmetric information the rural area is lack of qualified collateral security which hinders borrowers to get the loan. Fourth, the asymmetric information slowed down the development of rural financial institution and insurance company. Fifth, the lacking and unreasonable compensation of government finance is overstaffing compared with casualty loss amount. Sixth, hysteresis legal system affects rural finance development, in the next step, compare the strategic choice of rural financial participant under different circumstance by game analysis of rural finance risk without external sharing and compensation, the game analysis of risk sharing joined by safety institution, the game analysis of government finance participation compensation, to analyze how to build reasonable risk sharing and compensation system, to let rural finance risk get effective sharing and boost rural finance development, at the same time, the borrower gets the fund to expand production, and facilitate the development of rural economy. Finally, combined the current situation and issues with game analysis proposing the measures to improve rural finance risk sharing and compensation of Heilongjiang province from three parts, including the creation of rural financial service system, the government fiscal establish of variation external compensation regime, and propulsion of rural financial legal system and environmental construction.