Research On The Influence Of Financial Literacy On Behavior Of Household Borrowing

With the promotion of financial opening and the deepening of financial innovation,the complex financial environment puts forward higher requirements for consumers' financial literacy.On the one hand,financial fraud and credit default occur frequently,and the risk of financial products and services continues to rise;on the other hand,the imbalance of financial resources supply and self-restraint of demand subjects lead to serious financial exclusion in China,which inhibits the consumption and investment activities of residents.As a kind of important human capital,financial literacy plays an increasingly important role in family lending decision-making.This article uses the cross-sectional data of China Household Finance Survey(CHFS)in 2015 to study the impact of financial literacy on micro household credit behavior.First of all,the statistical data are sorted and combined to describe the distribution of financial literacy and the characteristics of family credit behaviors;secondly,the Probit model is constructed with financial literacy conducting as the core explanatory variable,with family credit demand,credit availability,loan limit and excessive debt conducting as the explained variables,and the individual characteristics,family characteristics and regional characteristics of family heads conducting as the control variables.The tool variable "average financial literacy of other families in the same community" is selected to build Ivprobit model to solve endogenous problems.This article draws the following conclusions:(1)the level of financial literacy shows the characteristics of imbalance between urban and rural areas and between different regions.From the perspective of urban and rural areas,the average financial literacy level of urban families is higher than that of rural families;from the perspective of different regions,the level of financial literacy of eastern region is far higher than that of central and western regions,and the level of financial literacy of central and western regions is close.In addition,the levels of financial literacy of families with different educational level,ages and family wealth are different.(2)From the perspective of family financing channel preference,the most important way for most families to borrow currencies is informal channel;from the perspective of credit exclusion,the main reason for credit constraint of demanding type is that it is estimated that the loan application will not be approved,does not know how to apply for it and considers the application steps to be complex.The mainreason for credit constraint of supplying type is low income,which banks credit cooperatives are worried about.Other than that,there is not either guarantee or collateral;from the perspective of loan amount satisfaction,the fund satisfactory rate of agricultural loans is the lowest;from the perspective of loan repayment ability,families with education loans and medical loans have weak debt repayment ability.(3)Using financial literacy as the core explanatory variable,this article makes an empirical analysis of the family credit behavior and draws the conclusion.Firstly,financial literacy promotes the residents' demand for formal finance and inhibits the demand for informal finance;secondly,the possibility of households with high financial literacy getting formal credit increases and the possibility of lending from informal channels decreases;The third,finance Households with high level of financial literacy tend to get more formal financial loans;The fourth,households with high level of financial literacy reduce the possibility of excessive debt behavior.Finally,based on the theoretical analysis and empirical results,the article gives suggestions on the improvements of financial literacy,the promotions of financial knowledge and the rational choices of credit behavior.On the one hand,it is of great significance to promote the equal access of Chinese residents to financial services;on the other hand,it improves the relevant research on credit financing of Chinese residents to a certain extent.