Rural Households' Informal Credit Study Of Xianjian Village, Wuhan City

Since reform and opening-up in china ,With the development of market-oriented economy and multiple operation in rural area, rural household's demand for capital has become more and more strong. The rural folk informal credit has become the main financial channel for the rural households to get loan because of the formal finance supply's shortage. This paper is about a informal credit empirical study in Xianjian village, which tries to disclose the behavior of the agricultural households in informal credit market, the factors influencing the amount of credit per household and the interest lever of Wuhan rural households, then analyze the reason of informal credit's widely occurrence in Xianjian village. Finally ,we get the conclusions and give our policy suggestions. Through this research ,author hopes that this paper can observe the problems in rural household's informal credit in China.The paper is divided into six parts totally:In the first section, introduction, the research background and significance of rural household's informal credit are described briefly, The types, characteristics, and functions of rural household's informal credit are given firstly ;then, we give the contents, methods and technical route of this paper.In the second section, points out the accurate definition of rural household informal credit and raise a theoretical hypothesis. There are many different definitions of Informal Credit in China at present, but up to now, there were still controversy in it. For study convenience, this paper divided informal credit into generalized informal credit and narrow-sense informal credit .The research scope of this paper is limited on the narrow-sense one, which is private borrowing and credit in monetary form.In the third section, analyze the rural household's informal credit development situation and characteristics in Xianjian village, Wuhan city. At first, this chapter introduce the village status and household's basic situation of Xianjian village. On this basis, we study the basic situation of rural households' informal credit in Xianjian village. At last, through data and case study, we get the 9 basic characteristics of rural household's informal credit in Xianjian village.In the fourth section, analyze the interest rate of rural household's informal credit in Xianjian village. It is pointed out that theory generally holds interest rate of informal credit is much higher than formal . Through field survey, we discover that most of rural household's informal credit in Xianjian village doesn't need any interest on money. Finally ,we give our economic explanation of this phenomenon.In the fifth section, analyze the cause, advantages and disadvantages of rural household's informal credit in Xianjian village. In the process of market economy's prosperity and development, as a traditional financing form, informal credit still occupied large market share. Its existence makes significant positive effect to the development of social and economy, but meanwhile, makes negative influence in financial market and social development. This part described the positive and negative influence respectively.In the sixth section, conclusion of this paper and policy suggestions on how to develop rural household's informal credit in Xianjian village are given.