Design Of Financial Linkage Scheme Of Rural Credit Market In A Certain Area

At present,with the continuous development of rural economy and the increasing demand for financial resources in the rural market,how to meet the demand for loans in rural areas has become the focus of attention.Although the government is constantly improving the policy of supporting agriculture and the formal financial institutions in rural areas are constantly reforming,the actual effect is not satisfactory.Rural formal finance abandons rural customers because of its high risk and cost.Although the rapid development of informal finance meets the needs of rural credit to a certain extent,it also brings many problems to the rural financial system.At this time,informal financial organizations intermediated by production cooperatives or leading agricultural enterprises show their unique advantages through their links with formal finance.Informal finance has information advantages,but its lack of supervision and non-standardization will bring some hidden dangers and risks to the operation of our financial system.The coexistence of formal finance and informal finance has its rationality.They are not only a simple substitution relationship,but also a complementary relationship.The connection based on this complementary relationship emerges at the historic moment.Its main purpose is to increase the supply of funds directly or indirectly from formal finance to informal finance so as to enable farmers to obtain loans.This paper mainly studies the imbalance between supply and demand in the formal financial market in rural areas of China,and the alleviating effect of Informal Finance on the phenomenon of insufficient supply.It points out that formal finance can consider the use of information advantages of informal finance to achieve financial linkages,thus alleviating the difficulty of loans in rural areas,and thus can also realize the supervision and guidance of informal finance.They coexist and complement each other to form cooperation so as to better serve the economic development of rural areas.Firstly,the paper introduces the theory of information asymmetry and transaction cost,and explores the necessity of financial linkage in rural credit market from the perspective of formal finance and informal finance to solve the problem of information asymmetry and transaction cost.Secondly,the existing formal and informal financial linkages are analyzed,and it is pointed out that the effects of formal and informal financial linkages are different in differentenvironments and conditions.At the same time,not all rural environments are suitable for linkages.Finally,according to the actual situation of many large-scale camellia oil production cooperatives in China,we design the financial linkage scheme of production cooperatives + credit cooperatives + farmers,which is most in line with the local actual situation.