Research On Famer Households Credit Rationing Mechanism

Credit rationing has been a tough problem which puzzles the scholars and the government.Lack of acquisition of long-term credit resources has hindered the farmers to change their endowments, and to accumulate human capital and physical capital. Lack of acquisition of longterm credit resources widen the gap between the rich and poor, but also intensify the differentiation between urban and rural areas. With the development of rural economy, the characteristic of farmers’ loan demand has gradually changed from small to large production requirements.Farmers’ money gap will be further expanded in the future. So how to alleviate the famer Households Credit Rationing, improve the farmer credit rate, improve the level of the welfare of farmer Households become a research focus in this paper.Firstly, this paper will guide by farmer Households demand, establish the framework of the farmer credit ration based on analysis of farmers’ demand. On the basis of it, respectively from two aspects: formal finance and informal finance to study the generation mechanism of the farmer households credit rationing. Secondly, from the perspective of farmer Households welfare maximization establish the governance mechanism of farmer Households credit rationing which based on design by contract. Finally, from internal control and external control Put forward the mechanism of farmers default risk. The paper try to ensure the mechanism will help to alleviate the farmer credit ration, and finally maximize the overall social welfare of the farmer Households..The main conclusions are:Firstly, Asymmetric information and the aversion of farmer Households leads to the farmer households suffer from formal financial credit rationing.Secondly, The lack of funds and lending preference structure of private lenders, social relations and reputation risk of rural spheres of, implicit interest rates that exist in the rural financial environment, the credit rate, lead to farmers suffer from informal financial credit rationing.Thirdly, To improve the credit of the poorest farmers is helpful to improve the level of the overall rural social welfare. Rates screening and guarantee make the screening and separation of different types of risk tolerance, the information asymmetry will be relived to some extent. In addition, introduction of the folk mediation lenders, the incentive mechanism of credit contract ensure the execution of credit contract, reduce the transaction cost, optimize the rural financial environment, thus effective governance the famers Household credit rationing.Forth, The internal and external control mechanism of farmers Households default risk can help reduce the farmers Households loan default rates, at the same time, raise the possibility of its loans, alleviate the farmer credit ration.