The Realistic Predicament And Legal Countermeasure Of Rural Credit Guarantee System

To improve the healthy development of rural credit guarantee is not only an effective way of supporting the issue of farmers, countryside and agriculture, but also an important way of advancing the rural capital circulation, promoting the interaction between the rural financial clients and financial institutions, and furthering the sustainable development of rural economy. The rural credit guarantee system, however, is developing very slowly because of the incompleteness of rural credit legal system, the lack of guaranty, the weakness of credit environment, and the imperfection of credit risk compensation mechanism.This article will start from the current status of rural credit, major methods and forms of rural credit, and related laws and regulations. Moreover, the author will, by elaborating the key issues of the development of rural credit guarantee and analyzing relevant foreign experience, present in this article her initiative opinion on how to improve the legal system of rural credit guarantee in further, increase the guaranty, build up the rural credit environment, and establish the effective rural credit risk compensation mechanism.The article consists of four sections: In the first section, the author will briefly introduce the current situation of the rural credit guarantee in our country, generally illustrate the major methods, forms and legal basis of rural credit guarantee, and emphatically elaborate the drawbacks of current rural credit guarantee.In the second section, the author will elaborate the drawbacks of current rural credit guarantee system, which include the incompleteness of rural credit legal system, the lack of guaranty, the weakness of credit environment, and the imperfection of credit risk compensation mechanism.In the third section, the author will introduce the experience of establishing and advancing the rural credit guarantee system of foreign countries (mainly US, Japan, France, India and Bangladesh). From such experience, the readers may obtain some enlightenment regarding the completion of rural credit guarantee of our country.The fourth section is the most important one in the whole article. The author will, based on the issued raised in the foregoing part of the article, present her own opinion and suggestion on improving the rural credit guarantee legal system, increasing the guaranty, building up the rural credit environment, and establishing the effective rural credit risk compensation mechanism in the aspects of system creation, promulgation completion, law revision, supervision strengthening, and so on.