The Influence Of Credit Rating To Farmer Credit Rationing:

Farmers suffering from formal credit rationing is always an important problem that our government tries to solve.The important factor that leads to the difference between the formal finance and the informal finance in farmer's financing is the difference in the degree of information grasp.Therefore the direct choice to solve the problem should be to take measures to alleviate the information asymmetry between farmers and formal financial institutions.In this regard,since 2009,China has formally proposed to build a rural credit system and promote credit rating,so as to promote loans to famers of formal financial institutions.Based on the information asymmetry theory of credit rationing,this paper studies the influence of credit rating factors on the normal credit rationing of farmers in the construction of rural credit system.In this paper,credit rating in rural credit system construction is defined as credit household,credit town,credit village,and credit rating within rural credit cooperatives.According to this definition,factors influencing a farmer's credit level include his own credit status and the credit status of his geographic region.This paper mainly studies the influence path of credit factors of all levels above on rural credit rationing.Therefore,this paper defines the influence path of credit rationing.Firstly,the influencing paths are divided into supply and demand.The information asymmetry can not only affect the farmers' expression of loan demand but also the loan decision of financial institutions.Secondly,according to the cause,credit rationing can be divided into transaction cost rationing,risk rationing,interest rationing and so on.Analyze the effect of information asymmetry mitigation on credit rationing caused by the above reasons.Structured questionnaires are designed to identify the above types of credit rationing.On this basis,this paper studies the effect of four proxy variables of farmer's credit status on various types of credit rationing by using Heckman two-stage model.The research shows that credit rating in rural credit system construction promotes credit rating,alleviates the information asymmetry between farmers and financial institutions,and thus alleviates the credit rationing of farmers to some extent:The agent variable of credit status significantly reduces the occurrence probability of demand-type rationing,and it also plays a role in alleviating supply-type rationing in the case of no secured loan.The higher the credit rating the lower the probability of risk rationing.Households without credit rating are more likely to be rationed due to cognitive bias.This paper argues that we should objectively understand the impact of credit rating factors in rural credit system construction,improve construction measures,perfect credit rating system and pay more attention to the application of rating results and personal credit rating.In conclusion,we should promote the development and application of credit rating in the construction of rural credit system according to the reason and path of rural credit rationing.