On The Factors Influencing A Second-time Loans Of Farm Households

The paper describes the development of farm households' loans in the context of China's rural loans and analyses the influencing factors of a second-time loans of farm households from banks.Binary Logistic is used to empirically analyze the extent of influence of the perspective influencing factors.Based on the above,the paper indicates the factors on which township banks should focus and puts forward the solutions on how to turn the first-time customers asking for loans to regular customers.Firstly,the paper elaborates the background,reviews the literatures home and abroad,and describes the issues and contents of the study.Overall,loan supply is insufficient and loan demand is strong in China's rural loans.The paper describes the difficulties,opportunities and challenges faced by township banks since their inception in 2007,indicating that township banks have its niche markets and their profit-earning capacities are high so their prospects are promising.Secondly,by using descriptive analysis,the paper describes the operations of Fujian Jian'ou Shishi Township Bank and its loans to farm households since its inception in 2008.By analyzing the performance of the said bank and the pertinent outcomes from the perspectives of serving rural areas,farmers,and agriculture,the paper answers the questions whether the said bank has fulfilled its mission and goals.Thirdly,by using the data of farm household loans of Fujian Jian'ou Shishi Township Bank from 2008 to 2010,the paper explores 9 potential factors.By using binary Logistic of SPSS,the paper analyzes the influencing factors of a second-time loans and finds out that loan term,first-quarter loan and second-quarter loan are the major influencing factors of a second-time successful loan.Finally,based on the above empirical analysis,the paper puts forward the solutions for Fujian Jian'ou Shishi Township Bank on how to develop new customers and make the first-time customers into regular customers so that these regular customers are the stable sources of income for the bank,Further suggestions include the construction of credit database for loan customers and the enhancement of credit management by making full use of computer systems.