The Study On The Role Of Rural Commercial Credit In Alleviating Farmers' Financing Constraints

Rural economic development comes to a new level in china,the agricultural transformation enters in a new stage,but increase of farmers' income is still a matter of great concern to all circles.Financial support is significant for increasing rural households' income,however,currently farmers are still facing serious financing constraints.We still need to use the endogenous power and external force,innovate financing channels,by using the greatest help of the rural commercial credit to ease farmers' financing constraints,promote farmers' capital formation and agricultural modernization level,increase farmers' income.Firstly the paper illustrates the basic situation of farmers financing needs from two aspects specifically: living financing needs and productive financing needs;deeply analyzes the concrete performance of the financing constraint in financing consciousness,financing channel and financing cost with data,and analyzes the main reasons for the formation of farmers' financing constraints from three aspects: farmers,financial institutions and government policies.Next,It emphasizes the characteristics of the universality,spontaneity and importance of rural commercial credit,and further expounds the advantages of rural commercial credit in alleviating the financing constraints of farmers.Then,the author discusses the development status of rural commercial credit in China and the problems in developing process.With the appliance of related theory,selected financing ability,household head's age,education level,managing types,village or township cadres incumbency,fixed assets,family labor quantity,health,understanding of the financial policy as variables,and creatively combining with folk customs and credit users' evaluation variables,constructed the multiple regression model.By using Eviews software to do regression analysis,the writer studies the relationship between rural commercial credit and bank credit,and the influence of related variables on commercial credit.The conclusion indicated that substitute relationship exists between the commercial credit and bank credit,and the substitution degree of farmers with credit rationing is higher than the entire farmer samples,farmers financing ability,education level and fixed assets has obvious effect on the quantity of commercial credits obtained by farmers.Finally,according to the empirical conclusion,it is suggested that farmers should constantly improve their own quality and make rational use of rural commercial credit to increase their income.Financial institutions should strengthen innovation and constantly enhance the complementary functions of bank credit and commercial credit.Government still need to perfect the supervision mechanism,reduce transaction costs,helping farmers financing,to give full play to the advantages of rural commercial credit,alleviate the financing constraints faced by farmers and promote the development of agricultural economy and rural revitalization.