Resident Homogeneity、Village Development Level And Farmers’ Credit Risk

Chinese rural credit business started start relatively late.Our country vigorously calls for developing the modern economy of rural in recent years,The realization of rural modernization economy is inseparable from financial support,especially the bank credit business.Farmers are the main part of rural credit,and their credit risk remains high.So many scholars have conducted a lot of research on them,including the factors of farmers and villages.Based on the study of farmers’ factors,the thesis focuses on empirical analysis of the impact of village factors on Farmers’credit risk.The thesis is based on the data of China Family Panel Studies.First,in order to understand the basic information of the sample,it is indispensable to describe the sample or the variables detailedly.Then it is suitable to solve the multiple mutual linear problem between variables with correlation analysis.Hierarchical generalized linear models are built to analyze influences of the farmer and the villages.Finally comparing the models and draw a conclusion.The model results show that sex、family size、family books、unpaid bank debt have a marked effect on peasant household’s credit risk in terms of peasant household’s factors.A man’s risk of credit is less than a woman.The results also show that The bigger family you have,the more risk of credit you get.The more family books you have,the more risk of credit you get.The more the amount of unpaid bank debt you have,the higher risk of credit you get.Although the significance of total family income is small,it has a certain impact on the risk of credit.We can see that the more total family income you have,the lower risk of credit you get.In terms of village’s factors,the influence of residents’homogeneity(the degree of difference in the socio-economic status of village committees and neighborhood committees members)and village development level(the per capita net income of villages)on the credit risk of famers is my major study.The study shows that the homogeneity of residents has a certain influence on the credit of rural households,but it is not significant;village development level has a significant impact on rural households’credit risk.The higher the village development level is,the smaller the credit’s risk is.In addition,the subsistence Security family number in the village is large,the credit’s risk is.In addition,the more low-income families there are,the greater the credit risk is.Above all,on the basis of the research results,the following suggestions are made.For famers,they should pay more attention to understand the assessment criteria for credit risk and improve their own ability to establish good reputation.For villages,the relevant departments should reduce the number of low insurance families and increase the per-capita net income.Besides,they should popularize the related bank credit information to farmers.For banks,much attention should be paied on the village’s factors.It is import to improve the accuracy of model and comprehensively consider the credit risk of rural households in various aspects.For government,a perfect system of farmers’credit collection should be set up to solve the problem of asymmetric information between banks and farmers.The corresponding legal system should be built to reduce the rate of bad loans.