Research On Financial Supporting To Rural Economic In Jilin Province

In this paper, there are four parts to research on financial supporting to development of rural economic in Jilin province. Including the status of agricultural credit in financial institutions, the SWOT analysis of the credit in financial institutions, the factors of the rural finance to support rural economy and the policy recommendations.First of all, this article related to rural finance based on the theory of financial institutions in rural areas of Jilin Province, the status of analysis of agricultural loans. Rural finance theory, including subsidies on agricultural credit, rural financial markets and the theory of perfect competition market, Jilin Agricultural Credit financial institutions are mainly five: China Agricultural Development Bank, Agricultural Bank of China, rural credit cooperatives, postal savings banks and the villages and towns bank.Agricultural Development Bank of China in the Jilin Province, until the country's business capital investment will be focused mainly on circulation of agricultural products, and capital for agriculture and development invest less, the business did not occur with the farmers borrow capital relations, the role of policy finance is very limited.Agricultural Bank of China since 1997 continuously adjust the loan structure, gradually reduce the proportion of agricultural loans, at present, the Agricultural Bank's business is basically no direct relationship with the farmers. At the same time, the branches in rural areas in Jilin Province is also a rapid decline, from 1998 to 1397 reduced to 637 in 2007, the Agricultural Bank of Jilin Province can be seen in the role of rural credit is getting smaller and smaller.Rural credit cooperatives in rural finance, The main force in Jilin Province, almost all branches throughout the township. The decade 1998-2007, the rural credit cooperatives of agricultural loans accounted for the total amount of agricultural loans of financial institutions in excess of 30%, and showed a rising trend year by year, by 2007, the value reached 85.4%, in Jilin province showing the monopoly in status.Jilin branch of the postal savings bank was established in 2007, China Banking Regulatory Commission on the Postal Savings Bank's position is to use its own characteristics, for the "three rural" to carry out financial operations, with other commercial banks in the formation of the complementary relationship between the regular rural financial institutions in rural areas the strength of the market, on the other hand it can be cited of the rural financial markets will be healthy competition in the market so that rural financial institutions can improve their operational efficiency.Village banks in rural financial markets of emerging institutions, as in 2007 in Jilin Province's towns and villages a total of five banks, new financial institutions to the rural financial market has brought positive changes and broader space for development.At present, irregular finance in the Jilin Province, farmers are among the main activities of the credit, though, monetary authorities to control the attitude of tough, irregular finance holding not further extend the scope and operation of the network, but the farmers need for capital as the economy the development of more robust, irregular finance in the Jilin Province, has been to maintain their market share stability. And in recent years, the phenomenon of irregular financing and more common, the average amount of the financing was also the trend of a liter.Secondly, Jilin Province, regular financial institutions and irregular financial institutions in the SWOT analysis of agricultural loansFor one part, the regular finance SWOT analysis:Regular financial institutions, credit security, network infrastructure, the scope of the entire economy in the re-allocation of resources, in the provision of large and long-term loans to lower transaction costs, etc. All this is reflected in the agricultural loans to its advantage; limit for such small amounts and more complicated and lack of mortgages and secured loans for agricultural households to regular financial institutions, personnel and infrastructure costs are high, the complexity of transactions has become the largest agricultural lending disadvantage; by the end of 2006, China Banking Regulatory Commission to adjust the relaxation of the banking financial institutions in rural areas, market access policies; in August 2007, the CBRC issued "on banking financial institutions to develop rural micro-credit operations guidance", these policies and measures to guide views with the regular financial institutions in rural areas is the support and play a significant role in promoting, Jilin Bank towns and villages in such a good time to come into being next to the rural financial market in Jilin Province their fists; contrast the natural conditions in rural areas of Jilin Province developed provinces, the poor, less contact with the outside world, development is difficult to credit the low recovery rate, which is in Jilin Province regular agricultural loans by financial institutions are facing the greatest threat.For the second part, the irregular financial SWOT analysis:Irregular finance has the feature of flexibility, convenience, will facilitate the provision of sporadic small loans, to a certain amount of range in a cost-advantage of a wide range of flexibility, free from time restrictions on the size of investment and borrowing process simple and efficient, in line with the majority of farmers the characteristics of agricultural credit, the feasibility of high, irregular finance in the characteristics of the greatest advantage, and secondly, as a result of an acquaintance of the traditional rural society, farmers family or personal information more transparent than the point of view, the regular financial information and also repayment of the advantages of mutual supervision; civil lending norms, such as non-IOU, the lack of security, there is no agreed upon interest rate, repayment period, such as liability for breach of contract, loss of credibility if the borrower, default is not also, it can easily lead to economic disputes, which irregular credit to finance the activities of the most obvious disadvantage; Bank of drafting the "Ordinance lending," the draft has been submitted to the State Council Legislative Affairs Office, irregular finance is expected to form through the norms of national legislation, such a positive policy to guide the irregular financial institutions is a good opportunity; Jilin Province, rural irregular finance to the development of its existence and today only scattered, small-scale, small-scale peasant economy and the business suit, the quality of personnel and operating conditions can not afford large the amount of the loan requirements. With the gradual deepening of the regular finance being of rural financial markets, expand market share, to participate in more business to rural credit, regular financial vacuum exists in the non-regular finance is facing considerable external threats. Then as for the empirical analysis in this article, including the empirical analysis of two models: a model for the single-variable regression model, the second model for the AK model.The first model is the total amount of agricultural loans made in Jilin Province, Jilin Province, Jilin Province Rural Credit Cooperatives and the Agricultural Bank of agricultural output in Jilin Province were done with regression analysis. We selected data for the 1998-2007 agricultural out put in Jilin Province, Jilin Province, the balance of agricultural loans, agricultural loans Jilin Agricultural Bank and rural credit cooperatives in the balance of the cumulative amount of agricultural loans. Regression results showed that agricultural output in Jilin Province and Jilin Province, between the agricultural lending was a positive correlation between agricultural loans and rural credit cooperatives in the agricultural economy in Jilin Province has a significant positive correlation between agricultural banks and the agricultural economy was inverse relationship. This shows that as of Jilin Province's most important financial activities, agricultural loans for the rural economy has provided strong support, and traditional rural financial markets play a role in the rural credit cooperatives and agricultural banks, in 10 years time-series analysis shows the diametrically two opposite results, rural credit cooperatives in the agricultural loans made for rural economic growth contributed to a very obvious, and the Agricultural Bank is constantly reducing the amount of agricultural loans, and rural economic development goes against the.The second model uses the theory of endogenous growth AK model, the model reveals the impact of rural economic growth rate of the three indicators are as follows: 1, the rate of savings into investment, the text in accordance with the actual situation in Jilin Province and data availability the use of agricultural loans-output ratio (L / G) in place of; 2, the marginal productivity of capital, the text used in the growth rate of rural investment-output ratio I / Y to used to measure the efficiency of investment in rural areas; 3, savings rate, as a result of data not available We use only the per capita income of rural residents the level of y and the actual interest rate r as a factor.Finalized in accordance with the model of rural economic growth rate equation is as follows: g =α₀ +α₁ ln( L / G ) +α₂ ln( I / Y ) +α₃ ln r +α₄ln( y)+μRegression equation results as follows:ln gdp = 3.46ln r - 1471.44ln( I / Y ) + 267.23ln( L / G ) + 0.17ln y- 44.51Goodness of fit value equation model 0.9988 better overall fit, regression results show that rural credit loan output ratio, per capita income and real interest rates for rural economic growth rate has a positive correlation relationship, and to explain the high level. This shows that the process of economic growth in rural areas, the agricultural credit development of the rural economy and its significant role in promoting, raising per capita income can contribute to economic development, higher interest rates affect the savings rate in Jilin Province is also an important factor in the rural economy. Investment-output ratio in rural areas this indicator did not pass the statistical test. The same year the value of indicators at different times in the Statistical Yearbook of frequent changes, statistics are not exactly the same caliber, so the authenticity and reliability of data problems.Finally, the rural areas of Jilin Province for the financial part of the policy recommendationsFirst of all, in the regular finance we should develop the small and medium-sized rural financial institutions, establish a strict access and monitoring system, strengthening small and medium-sized financial institutions in Jilin Province establishing information disclosure for small and medium-sized financial institutions to create a level playing field for external business environment; Secondly, to strengthen irregular finance guidance and supervision, and government should give the irregular financial accurate positioning, it should be included in the effective supervision of the regulatory authorities, at the same time, through the system given the necessary protection and support the passage of the necessary institutional innovation to strengthen the cooperation of the regular and irrgular finance, and then improve the financial development of the financial market .