Research On Fiscal Support Policy Of The Rural Credit Guarantee

For a long time, the financing difficulties and high financing cost has troubled China's rural economic development. The core problem causing insufficient supply of rural credit is the rural credit guarantee system's imperfection and the absence of fiscal support. Summarizing the motivation, necessity, methods and effects of fiscal support for rural credit guarantees laid a theoretical foundation for the choices and manner of fiscal policy. At the same time, fiscal support for rural credit guarantee can help improve the efficiency of rural credit market and the formation of rural credit guarantee system. Compared to the fiscal support for rural credit, the fiscal support for rural credit guarantee are more in line with the general direction of the fiscal and taxation reform and improve the efficiency of fiscal support for agriculture. Based on this, this paper mainly studied the content of the following five aspects: First, we carefully examined the theoretical basis of fiscal support for rural credit guarantee, including motivation, necessity, method and effect; Second, we analyzed the current situation and problems of fiscal support for rural credit guarantee; Thirdly, we summarized the successful foreign experience of financial support for rural credit guarantee and its enlightenment to China; Fourthly, we analyzed the effect of various kinds of fiscal support manners for rural credit guarantee and conducted an empirical test; Fifthly, according to the existing problems in the fiscal support for rural credit guarantee, we put forward the corresponding countermeasures and suggestions for improvement. In this paper, the main conclusions and improvement measures are as follows:Rural credit market failure and the quasi-public goods nature of rural credit guarantee market, externality and information asymmetry is the source of fiscal support for rural credit guarantee, market failure and efficiency recovery of rural credit market makes it necessary for Public finance to support rural credit guarantee. The two main means of fiscal support for rural credit guarantee are direct participation and indirect support, namely to participate in the rural credit guarantee institutions and fund in different degrees, and to use various financial measures in order to balance the cost and benefit of rural credit guarantee institutions and reduce the management risk. The direct effect of fiscal support for rural credit guarantee is to increase the rural credit supply and the service efficiency of fiscal funds. The indirect effect is to improve market efficiency of rural credit and raise the level of social welfare.At present, China's fiscal support for rural credit guarantee is facing the following problems:the lack of long-term strategic objectives and global planning, the ambiguity of target, the serious conflict among various levels of government, the limited amount of money and imperfection of compensation mechanism, the irrational investment structure, the weak leverage effect and imperfection of support mechanisms.The enlightenments of successful experience of foreign fiscal support for rural credit guarantee to China are mainly as follows: we should establish a long-term mechanism of fiscal investment in rural credit guarantee, coordinate the relationship between rural credit guarantee institutions and rural commercial banks, at the same time, we should specify the market positioning of policy guarantee institution and commercial guarantee institution, and to realize the diversification of investment of rural credit guarantee institutions and to establish a complete support system of the rural credit guarantee.Compared to the rural credit guarantee funds and the rural credit guarantee risk compensation funds, the utilization efficiency of financial funds of re-guarantee is the lowest. From the perspective of improving the efficiency of rural credit market, fiscal support for rural credit guarantees should follow the "pecking order":If government's intervention in the credit markets is efficient, the government should optimize the allocation of resources in rural credit through credit guarantee scheme first and through subsidized credit programs in the second place. Only when the credit guarantee support reach the degree that borrowers can use fiscal guarantees to replace private mortgage-backed financial guarantees with alternative private mortgage guarantees, the government should start the credit subsidy programs. The empirical results show a significant impact of government fiscal support to the improvement of rural credit guarantee institutions'efficiency, thus confirming the effectiveness of fiscal support for rural credit guarantee."Two main one auxiliary" mode, which is dominated by policy and mutual rural credit guarantee institutions, and assisted by commercial rural credit guarantee institutions, is more in line with China's national conditions. Construct platform for land circulation should be used as an important part of fiscal support for rural credit guarantees. In addition, China should improve the effect of fiscal support for rural credit guarantee through perfecting the funding sources and means of operation, establishing collateral substitution mechanism and exercising legal construction.