Analysis Of Factors Affecting Rural Commercial Banks' Loan Default Of Farmers

With the rapid development of market economy,China's agricultural production has undergone tremendous changes,farmers are increasingly involved in the credit market in the purpose of expanding the scale of production and operation with the use of loans.However,due to the insufficient development of financial system in rural areas,the instability of credit and the lack of credit data,rural credit institutions can not accurately evaluate the credit status of farmers when they receive the loan request from farmers,which increases the risk of rural credit.Therefore,it is the most important for rural credit to establish a scientific system to evaluate farmer' credit in rural areas.In this case,this paper studies the problem of farmers' credit evaluation,and on the basis of summarizing and combing the predecessors' research,analyzes the problem of peasant household credit evaluation from the four aspects of peasant household's self and family characteristics,peasant household's solvency,production and operation status and credit information.Based on the detailed analysis of a rural commercial bank's household credit rating data,this paper combs the significant factors that affect the farmers' credit rating.The results of empirical analysis show that Farmer's age,family support and support number,residences' fixed place,household income,household assets and liabilities ratio,non-agricultural income,farmers' fixed production and operation sites and equipment,loan amount,loan use,guarantee method,the proportion of own funds and other factors significantly affect farmers' credit rating.Compared with the indexes used by rural commercial banks in the credit rating of farmers,the evaluation methods used by rural commercial banks are still to be improved in two aspects,which are comprehensive and effective.Based on this,this paper puts forward that the evaluation index of peasant household credit rating should be perfected,and the production and operation status and qualitative analysis index of peasant household should be included in the evaluation system,and the collection of peasant household credit information should be carried out as soon as possible to improve the credit rating mechanism of rural commercial banks.Only in this way the credit risk could be controlled and the healthy development of the rural financial market in the current rural financial market rapid development could be secured.