Soft Information, Relational Lending And The Rural Mutual Financial Cooperative Viability

Agriculture is the foundation of the national economy,and rural finance is the "blood" of the agricultural system effective operation subsystem.At present our country rural financial institutions with actual from traditional formal financial supply is very limited,a large number of microfinance demand is not solved,at the same time the rural financial mutual cooperative nationwide pilot and promote continuously,became a hot issue of rural finance.The present condition of the existence and development of the rural financial mutual cooperative is not optimistic,generally faced with the member's loan demand and support loanable funds is limited,lack of financial and management professionals,and limited income is difficult to maintain operating costs and other issues.Problems in the process of rural mutual financial cooperative development can be seen as the lack of viability of an initial evidence.This article applies the method of case study,on the basis of theoretical analysis with typical cases of rural mutual financial cooperative explore the internal logic and viability.Theoretical deduction and case studies found that:(1)the advantage of relational lending based on soft information is the key to the existence of the rural mutual financial cooperative.Staff and localization of financial institutions has accumulated a lot of soft information,so as to make the rural financial mutual cooperative trading mechanism,matching with the business operating costs,etc,in addition also has the production relation of life and the relatio nal lending under the invisible guarantee mechanism to reduce the membership of loan defaults.(2)members without considering the cost of capital and loan losses,Yuehuifinancial mutual-aid cooperative still can survive,but this is not sustainable.If maintaining the current membership scale of equity capital and loan interest rates,consider membership cost of capital and loan losses,so Yuehui financial mutual-aid cooperative lack of viability.Rural mutual financial cooperative must have viability,to keep the organization the survival,the development of credit business and fulfill its mission.Based on the research conclusion of this article,from the following several aspects to improve the viability of the ruralfinancial mutualcooperative:membersof dynamic optimization,adjust the membership levels;Apply for the discount subsidy of government and Integration of agricultural support funds;Promote rural insurance service level,reduce the loan loss rate,etc.