Research On Credit Evaluation Of Specialized Cooperatives For Farmers

With the publication of The law of specialized cooperatives for farmers in 2007, it established the legal person status of specialized cooperatives for farmers. This prompts the development of specialized cooperatives for farmers which is similar with the mushrooms after rain. According to the statistics of China’s state administration for industry and commerce, the number of the specialized cooperatives has increased to more than 1.289 million in the past 8 years. In the developed process of specialized cooperatives for farmers, whether the investment in fixed assets or working capital turnover has reveal ed the strong demand for financial capital. In terms of the current situation of its development, the various problems have appeared in the early stages, such as the industry on a smaller scale, relatively loose environment of operating, the weakening competition strength, and unclear property rights, and have led to the emergence of the problem of financing difficulties. The bad rural credit environment further exacerbated the financing difficulties problem of specialized cooperatives for farmers. In this paper, through the establishment of credit evaluation system, the writer builds a virtuous cycle of credit channel which bases on the financial institutions and specialized cooperatives for farmers and makes the credit as "economic ID card" of specialized cooperatives for farmers. These measures fundamentally solve the problems of the information barrier between banks. This research has important theoretical significance and practical significance about remitting the financing difficulties of specialized cooperatives for farmers and optimizing rural financial resources allocation.This paper will combine the standard norms and demonstration analysis, and base on some theories for the credit rating of specialized cooperatives for farmers which include the dissymmetry theory, the information asymmetry theory, social capital theory, credit evaluation theory. The purpose is to construct the credit rating index system of specialized cooperatives for farmers, and credit rating model. moreover, 115 specialized cooperatives for farmers will as sample data to carry on the demonstration analysis, and we will conclude the credit rating level and propose the corresponding conclusions and suggestions through the analysis results.The main work and conclusions of this study are as follows:1. From field survey found that in the rural credit market, the silver club as a result of serious information asymmetry problem between financial institutions and Specialized cooperatives for farmers appeared "financing difficulties" and "financing expensive" two melting phenomenon.Is shown as:on the one hand, financial institutions by raising the lending rates and other means to cope with its face high risk.Farmers’professional co-operatives, on the other hand, due to pay high interest rates might make "adverse selection", so that the risk of moral hazard.Therefore, this article put forward to solve the farmers’ professional co-operatives with credit rating due to the asymmetric information problem of "financing difficulties".2. This paper combed the related theory and method of credit evaluation system, combined with the characteristics of farmers’ professional co-operatives, on the basis of spot investigation, expert advice and strive to comprehensive and objective to construct the evaluation index system of specialized cooperatives for farmers credit.On the basis of existing research, based on the theory of ethics to join the "rules" and "hui" letter of index to reflect the farmers’ professional co-operatives management standards and benefit the close degree;Based on sociological theory introduces part can reflect the stability of the development of farmers’ professional co-operatives and future earning capacity measure of social capital;At the same time, due to different regional economic resources endowment is different, based on economics theory is introduced into the macroeconomic indicators reflect the local economic conditions.Preliminary constructed contains 70 index of specialized cooperatives for farmers credit evaluation index system, then using the Pearson correlation analysis, to determine the different dimensional levels of direct representation of index variables for credit-default significantly and the collinearity between each index variable, and then to realize the optimization of the evaluation index system;Finally built a layer with four dimensions and eight standards,32 index layer as the basic structure of credit evaluation system.3. In this paper, by adopting the idea of "layered empowerment, step by step a summary", use the uncertain analytic hierarchy process for weighting, which expressed with interval number judgment matrix of element, instead of the traditional AHP method, the exact number.It can effectively solve the problem of expert evaluation too subjective, and the establishment of the judgment matrix through the analysis of the consistency check is reasonable.In addition, the interval number judgment matrix based on possible degree sorting method, definite index weight is given, has high practicability and effectiveness.4. In this paper, based on pattern recognition, fuzzy closeness formula and choose to identify nearly principle of credit rating, and specialized cooperatives for farmers credit evaluation model is established.The method to the specialized cooperatives for farmers credit status and the credit rating had good map, to avoid the traditional methods of separate analysis of indicators to determine levels of disadvantages.In order to verify the model, the model for the following empirical analysis:the 115 samples of farmers’ professional co-operatives into standard state vector after standardization of data processing, and then on the basis of expert opinion, set up credit rating and quantify for the standard fuzzy state vector, the combination of empowerment, plug in the improved Euclidean closeness formula to calculate the sample data of state vector and the standard fuzzy closeness between the state vector, and use the selection principle to choose corresponding to maximum degree level as the specialized cooperatives for farmers credit rating.Combined with the actual, verified the model has a certain scientific nature and feasibility.Through the comprehensive evaluation of specialized cooperatives for farmers credit, for financial institutions to provide a more valuable reference, thus effectively relieve the "financing difficulties" problem.5. Based on the above analysis, this paper puts forward the following Suggestions:one is to advocate government involvement, at the same time using the perfect guarantee system of the government credibility, to establish a government-led guarantee company, make up for a lack of effective collateral farmers’ professional co-operatives, share trading risks, so as to improve specialized cooperatives for farmers credit rating;Second, financial institutions should avoid "little", of the mortgaged property is less, but relatively strong demand for money, better growth evaluation grades of agricultural professional cooperatives should give more financial support;3 it is through innovative financial guarantee mortgage products, such as order to pledge, accounts receivable, policy, mutual funds, direct subsidies to pledge funds guarantee, grain is made valid by means of the expected return pledge collateral, so as to improve the management ability of farmers’ professional co-operatives, further improve the credit level;Four is to improve the management level of specialized cooperatives for farmers, cultivating agricultural professional managers;Finally, the future development of the local specialized cooperatives for farmers credit evaluation system prospects and research direction was prospected.