Research On The Credit Innovation Of Rural Credit Cooperatives Hunan Provice

To adapt to the changes of rural economy and obtain sustainable finance, rural credit cooperatives go in for credit innovation, which includes the innovation in credit structure, loan products and so on. This article analyzes the necessity, existing problems and approaches of credit innovation of rural credit cooperatives in Hunan Province from the perspective of financial innovation motive.The main reason of financial innovation is to conform to the requirement of the supply, and supervision. Firstly, this paper analyzes credit innovation of rural credit cooperatives in Hunan Province from the perspective of demand, supply, and supervision. From the perspective of demand, the adjustments and changes of rural economic structure make rural capital demand show large and long-term trend; From the perspective of supply, the country has issued a series of policies supporting rural capital supply and improving the rural credit supply environment; Regulators has adjusted regulatory policies of agriculture finance business , which create conditions for rural credit product and service mode innovation .Secondly, the paper analyzes the credit service problems of rural credit cooperatives in Hunan Province and pointes out the main factors of the problems are insufficient credit innovation, the existence of restrictive factors of credit innovation. At the same time, the paper proposes that credit innovation should adhere to service "Agriculture" positioning, market-oriented, strengthen risk control and the principles of innovation and differentiation. Moreover , for changes in the economic structure of rural area and the limited collateral in the actual situation , Proposing that the innovation of risk control and risk-sharing mechanism are the keys to credit product innovation of rural credit cooperatives.Thirdly, this paper does case studies on Hunan Rural Credit Cooperatives innovative loan products by using detailed information and studies the innovation theory of risk control and risk-sharing mechanisms of innovative credit products from the micro-level. Draw the following revelation: Credit innovation should address the financial needs of farmers; establish a sound risk control and risk sharing mechanism is the key to the credit product innovation; risk control should be introduced in the insurance and seek government support measures. Finally, it proposes policy proposals of speeding up Hunan Rural Credit Cooperatives'credit innovation from the external environment construction and policy support measures.