Research On Rural Credit Product Innovation In China

Since 2004, "number one" file is about some problems that increasing the income of country and making rural financial reform every year in China, therefore, the state and local governments have devoted great efforts to develop the rural economy in recent years. Nowadays, based on the "three agriculture" policy in our country, it is very meaningful that researching rural credit products innovation. Indeed, production and life in country have been greatly improved over the years in China, meanwhile, the speed of rural economic development is also very rapid. But as a major aspect of rural economic, rural finance develops slowly in recent years. As the important carrier of the rural financial reform, rural credit product innovation could directly affect the development of rural finance in China. Eventually, it has some significant impacts on the construction of "three agriculture". Thus, This paper mainly studies how to promote China’s rural credit product innovation.This paper studies China’s rural credit product innovation with many research results from the Chinese and foreign scholars. First of all, this paper states the related concepts of rural credit products and financial innovation theory, it lays the basic research scope of this article. It expounds the concept of rural credit and credit product innovation in detail. And it describes five kinds of classic financial innovation theories, including technical financial innovation theories, constraint and inducible financial innovation theories, systematic financial innovation theories, evading financial innovation theories and financial innovation theories on transaction cost. These further stress the importance of financial innovation in this era. Secondly, this paper states the current situation of the rural credit product innovation in China. And some classic credit innovation products was introduced in our country recently. For instance, Forestry property mortgage, Harvest micro-credit card, Overdrawn joint guarantee loan and Usufruct mortgage loan. Thirdly, this paper explores the essence through the phenomenon, reveals the problems of rural credit product innovation in our country by analyzing the present situation of innovation again. Moreover, it obtains some inspiration from the process of combing foreign rural credit model and innovative products. And then it finds some defects of rural credit product innovation: big credit risk, failing to meet the actual demand, institutional restrictions. Finally, this paper puts forward a series of countermeasures to promote the development of rural credit product innovation in China. At the same time, it analyzes several typical innovative products to show the vigor of rural credit products innovation in our country from different angles.