Fund Mutual Cooperative:an Effective Form Of Rural Capital Self-supply

With the promulgation of the Central Document No.1 in February 2017,Document No.1 has focused on the issue of "Agriculture,Rural and Peasantry" for consecutive 14 years and has repeatedly stressed the importance of rural finance for rural economic development.The perfect rural financial market can provide sufficient capital supply for the development and industrialization of the rural economy,andalso can broaden the farmers'investmentchannels,effectively absorb the rural surplus funds,promote the regional economy and meet the needs of the multi-level rural economy.However, under the current rural financial system, the rural capital is flowing out and the fund demands of farmers are not effectively satisfied.The problem that rural finance can not keep up with the development of rural economy is long-standing and still has not been solved well.The two main providers of rural financial market are Commercial Banks and Rural Credit Cooperatives.At present,it's general that they absorb a large amount of rural capital,but rarely return the funds to the rural market.As a result,rural funds is flowing out seriously.When it comes to agriculture loans,it is strict and high threshold.In recent years,thecooperative financial organizations such asfund mutual cooperativehave provided a good idea for us to solve this problem.As an endogenous Rural Mutual Cooperatives,it is possible to make up for the disadvantages of Commercial Banks and Rural Credit Cooperatives on the shortage of rural funds supply.In addition,it helps to form a self-supply system in rural areas.Farmers are the main body of rural financial market.Therefore, the study of farmers' demand for funds and the new ways to solve this problem will help to alleviate the difficulty of rural loans and also further stimulate the development of agricultural industrialization and the improvement of urbanization.This paper starts from the perspective of farmers' loan demand.It based on the field survey data of 415 households in 20 villages in Henan Province and the interview data of the Rural Credit Cooperatives in Shandong Province.The first chapter introduces the research background and puts forward the problems.The second chapter analyzes the rural capital supply situation of Henan Province by descriptive statistics,and puts forward the problem of dislocation of supply and demand of rural capital.In the third chapter,I analyze the reasons for the dislocation.Through the case study,chapter four studies the Rural Mutual Cooperatives which can help solve the problem of capital dislocation and can become the effective form of rural capital self-supply.The last chapter analyzes the factors that influence the rural households' financial needs and the problems of the further development of fund mutual aid societies.At last,it concludes that rural credit cooperatives are an effective form of self-supply of rural funds,which can help solve the problem of dislocation of rural capital supply and demand in rural financial market,provide funds for the development of the rural farmers and promote the development of rural economy.