Analysis On The Contribution Of Financial Poverty Alleviation Of Local Commercial Banks In Qinghai Province

With the unremitting struggle of the reform and opening up for forty years,China is in the historical process that the whole nation rushes toward well-off society.At present,Chinese economy is the second largest in the world,and its comprehensive national strength is also in the forefront of the world.The developing potential and space is immeasurable.However,nowadays reform and opening up has entered the deep water area,naturally there are many "hard bones",the current basic living security issues of nearly 100 million poor people in China are urgently to be resolved.The government has vigorously guided finance to promote economic development and allow financial work to penetrate every corner of the motherland,for the purpose of effectively reducing the poverty rate.In general,favorable financial work can greatly reduce the number of poor people and help the poor get faster return.Nevertheless,due to the imperfect financial market and system in China,the rural poor cannot obtain financial access through legal channels and most of the poor do not have financial consciousness.This paper regards the working results of the financial poverty alleviation work of the rural commercial banks in Menyuan County of Qinghai Province as the research object,and summarizes the contribution of the rural commercial banks in Menyuan County about improving the local poor people's livelihood.In the process of analysis and writing,the author seriously considers the actual situation in Menyuan County,such as economic development,population and per capita income etc.These surveys lay a solid data foundation for quantitative analysis of this article.This paper is based on the quetionnaires of four towns in Menyuan County(Haomen Town,Qingshizui Town,Quankou Town,Dongchuan Town,Zhugu Township,Malian Township,Xianmi Township,Yin County).We conduct two separate questionnaires on August 20 and September 7,2018.A total of 400 questionnaires are distributed in the survey,376 copies are recovered and 373 questionnaires are valid,The effective rate of the questionnaires are 93.25%.In the two field surveys,we collect the data about the financial poverty alleviation work of the rural commercial banks in Menyuan County.Through anallsing above data,we put forward the objective,reasonable and effective suggestions for the deepening and accelerated development of financial poverty alleviation in the rural commercial banks of Menyuan County.This paper can be divided into four parts.Firstly,Through summarizing the related concepts and theoretical foundations of poverty,this paper analyzes the current poverty situation in China and the systematical reason that leading to poverty,which lay a theoretical foundation for the follow-up writing of this paper.Secondly,This paper explores the social and economic development of Menyuan County,the general situation of Qinghai Province's rural commercial banks,the scale of loans,the direct and indirect effects of financial poverty alleviation on farmers' capital allocation.Then we conclude that the financial poverty alleviation loans of rural commercial banks in Menyuan County have been improved the self-development ability of poor households to some extent.Thirdly,This chapter is the key part of the writing in the article.Through the relevant statistics collected from survey,the author makes an empirical analysis of the contribution of financial investment in poverty relief in Menyuan County.First of all,the author makes multiple linear regression using indicators: the per capita income,the income of the primary industry,the income of migrant workers,and the financial poverty alleviation loan.The results show that the correlation is significant and the per capita income will increase by 69.604 yuan for every 10,000 yuan of financial poverty alleviation loans.Then in order to explain the contribution of financial poverty alleviation,through the ADF test,the Johansen test and the Granger causality test,the author uses VAR variance decomposition to measure the contribution of financial aid poverty alleviation loans of rural enterprises in Menyuan County.The results show that financial poverty alleviation loans contribute 12% to the income of the primary industry,and 3% to per capita income and 6% to income from migrant workers.Finally,Some measures and suggestions are given in this paper:Financial poverty alleviation is a big project that needs long-term penetration,Government and financial institutions play an irreplaceable role.On the one hand,the author suggests that the government should improve the poverty alleviation policies and arouse the financial awareness of the poor.On the other hand,local rural commercial banks should enhance their comprehensive strength and provide better services to customers.Under the joint efforts of many parties,I believe that financial poverty alleviation will successfully win the fruits of victory and build a virtuous circle of farmer economic circles in Menyuan County.More importantly,this paper has a relatively good reference and theoretical significance for financial poverty alleviation in areas similar to those in Menyuan County.