Research On Rural Credit Cooperatives Farmers Microfinance Problems In Jiayin Country

On December in 2006, the China Banking Regulatory Commission approved that the rural financial institutions could make a tentative to doing the business of microfinance and the rural financial market in Heilongjiang Province has developed very well. As one of the county- level unions in Heilongjiang Province, the one in Jiayin County took over the operation philosophy of serving for Agriculture, Rural area and Farmers, of provincial union, from the beginning of the business of microfinance, which took important role in local supporting agriculture and giving favorable treatment to farmers with the advantage of its cheap interest rate. At present, besides Rural Credit Cooperatives, there are also some other supply bodies of credit capital, such as, the Agricultural Development Bank, Postal Saving Bank of China, village banks, Rural Loan Society, small loan companies, private lending and so on, so the competition on the business of microfinace grows increasingly fierce. On one side, the emergence of Postal Saving Bank of China and private lending brought about the stress of the competition, and on the other side, the Rural Credit Cooperative itself faced the situation of reform, which are not only an opportunity but also a challenge to the development of the business of microfinance of Rural Credit Cooperative in Jiayin County.In order to solve the historical problems, improve the state of operation, enhance the capital strength and sharpen the economic benefit and competitive edge of the rural credit cooperatives, the State Council issued The Pilot Program on Deepening the Reform of Rural Credit Cooperatives on June in 2003. After the Rural Credit Cooperative changed to Rural Commercial Bank, its scope of business has been much wider than before and it adopted modern enterprise management, which improved its competitive. At present, the reform of Rural Credit Cooperative in Heilongjiang Province has been carried out and the primary Rural Credit Cooperatives in Harbin, Heihe, Daqing, Yichun, Daxinganling Area and many Rural Credit Cooperatives in other cities and counties have changed to rural commercial banks, involving the one in Jiayin County. Under the overall situation of the reform of Rural Credit Cooperative, how to improve itself in the competition and reform, and how to maintain the main force position in rural commercial business? Those are the realistic questions faced by the Rural Credit Cooperatives in Jiayin.In this paper, there are the introduction of the concepts of Rural Credit Cooperatives and microfinance on the basis of the literature review of rural commercial at home and abroad with the methods of induction and deduction, positive analysis and normative analysis and qualitative analysis and quantitative analysis. Supported by related theory, the author analyzed the problems of microfinance in Rural Credit Cooperatives in Jiayin County.Through the collection and analysis of the data from prophase investigation, the author set up the Logit Model of the influencing factors to the business of microfinance in Rural Credit Cooperatives in Jiayin County and pointed out the main factor.Then the author analyzed the present problems and introduced the successful experiences of the Rural Credit Cooperatives in other counties and gave the suggestions to Jiayin. Aiming at the issues, the author got to the conclusion that the Rural Credit Cooperatives in Jiayin should adjust and accelerate the reform according to the actual situation and afford more policy support and so on. The article is intended to realize the supplement theoretically and promote the regional economic development of Xiaoxinganling Area and even the whole province. In practice, it is helpful to provide policy basis to the scientific development microfinance in Rural Credit Cooperatives in Jiayin County and promote the guiding significance to the creation of rural financial institution.