Financial Support For Development Rural Economic With Bank Financial Institutions In Zhangjiakou

From the year 2014 to 2016,the State Council issued a document to improve the reform effectiveness continuously and promote rapid growth of rural economy.This document proposed that specifically,to improve the reform effectiveness of rural finance continuously,the state fiscal taxation,the implementation of monetary loans,the regulatory role of the financial and other effective policies and regulations as a secondary.And constantly purpose to promote China’s financial resources continue to move closer to the three rural areas,guarantee the total amount of rural credit to achieve continuous improvement and the proportion of loans to agriculture has gradually increased.The rural finance in Zhangjiakou has been developing for many years,which had initially built rural commercial,policy and financial institutions with cooperative nature.First of all,the current situation of financial support to the rural economic development by the banking financial institutions in Zhangjiakou was analyzed in this paper.The development of banking financial institutions in Zhangjiakou had an effect on the development of rural economic in two ways:(1)the equilibrium of rural financial capital supply and the funding requirements for rural economic development in Zhangjiakou;(2)the profitability of rural banking financial institutions.the VAR model was used to make a empirical analysis on the development level of rural economic,the equilibrium of rural financial capital supply and the funding requirements for rural economic development in Zhangjiakou and the profitability of rural banking financial institutions.The cointegration test found that there was only one long-term equilibrium relationship between the three.We found the causal relationship between the three in shortly through the impulse-response function: The equilibrium of rural financial capital supply and the funding requirements for rural economic development in Zhangjiakou played a significant positive role in promoting the economic development,and the effects continued to be effective.The profitability of rural banking financial institutions would make a significant negative effection on annual GDP.The improvement of the average profit rate in the current period was restricted to Zhangjiakou rural economic development.When the average profit rate was affected by a certain degree of external shock,the actual loan satisfaction rate would produce negative fluctuations.The profitability of rural banking financial institutions had been an obstruction for the equilibrium of rural financial capital supply and the funding requirements for rural economic development in Zhangjiakou.At the same time,it has direct or indirect negative effects on the economic development.Finally,the inner and external causes in the financial support for rural economic development were analyzed and the relevant response strategies were also proposed.