A Research On The Influence Of Village Banks On Anti-Poverty In China

Poverty has always been one of the important social problems which the party and the government is most concerned.”The thirteenth Five-year plan” will put the poverty alleviation and development work on a more prominent position and put forward the “two ensure" poverty reduction goals.However,China’s anti-poverty task is quite formidable,"five projects","a group of five" cannot leave the financial support.Village banks are a new form of financial institutes in rural areas,which aim to provide the financial services in rural areas,so that the supply and demand contradiction could be solved and the economic growth in rural areas could be accelerated.To study the influences of village banks on the poverty alleviation and to figure out the specific relation and mechanism between the village banks and poverty in rural areas are very meaningful for finding out the problems in village banks development and formulating related policies and measures,so that a healthy development of village banks could be ensured and poverty alleviation in rural areas could be boosted.First of all,national and also foreign literatures about anti-poverty of village banks have been demonstrated and based on that village banks as mechanism for anti-poverty in rural areas have been analyzed---Village banks have microscopic and also macroscopic influences on poverty in rural areas.Secondly,the development situation of village banks in China have been introduced,including the introduction of set-up situation and also development models,in the same time,analyze the result of anti-poverty by combining the Minsheng village banks.Based on this,further analyze the problems they faced.Thirdly,in this thesis related data from 2007 to 2014 in rural areas have been collected.FGT poverty index,balance load of village banks,growth rate of GDP per capita in rural areas and GINI index have been used separately to measure the poverty situation,level of development of village banks,economic development and income distribution situation in rural areas in China.Then using the Multiple linear regression model,to observe the Village Banks’ effects to poverty.Based on the empirical results a conclusion could be draw that the level of development of village banks has equilibrium with the poverty incidence in rural areas.What’s more,there is a negative relation development of village banks and poverty,which means the development of village banks could alleviate poverty in rural areas.However,there is an unapparent positive relation between the level of development of village banks and the depth and intensity of poverty in rural areas.This shows that compared with the poor,the poverty groups have gotten no more benefit from the village Banks.the traditional formal financial institutions can effectively reduce the incidence rate of rural poverty,but it also have produce positive influence on the strength and the depth of rural poverty,exacerbating relative poverty.On the other hand,Economic growth have negative impact on rate,depth and intensity of poverty,the GINI coefficient and the three were positively to the relationship.This shows that rural economic growth could reduce poverty,and inequality of income distribution is not conducive to poverty reduction.At last,based on the empirical results some suggestions for village banks have been pointed out for improving their influences on anti-poverty in rural areas,including an increase in the efficiency of village bank,strengthen the ability of sustainable development of village Banks and the optimization of rural external financial environment.