A Study On Development Of New Rural Financial Institutions In Guangdong Province

Since2006, the remarkable characteristics of new-type rural financial institutions reformis to relax the rural financial market access of capital, allow domestic and foreign capital,industrial capital and private capital to rural areas, investment, acquisition of new villagebanks, small loan companies and rural fund mutual aid agency, three kinds of new financialinstitutions (organization). In six years, the village bank has set up more than700, but by thedecreasing number of regulators, did not reach the expected1000goals. The micro-creditcompanies are developing rapidly; the number has reached more than3000. The rural mutualcooperatives from the pilot to date there has been no breakthrough, China initiated theestablishment of less than50, relatively slow. The new type of rural financial institutionsreform is the central leading from top to bottom, the design is reasonable internal incentivemechanism is its availability in rural "root" of the most important factors; and related policysupport, is the important factor in the growth of the.In this sense, the new rural financial institutions development of Guangdong, largelydetermine by national policy guidance and new types of rural financial institutions’ ownvitality. Of course, the supporting measures of Guangdong will also effect the development ofvillage banks, micro-credit companies and mutual funds cooperative. Large angle based onthe national rural financial reform, combined with the status quo and future development ofGuangdong new rural financial institutions, using the SWOT analysis method, through thedevelopment of data analysis in recent years new rural financial institutions, informative, thispaper draws some conclusions.If the commercial banks led the establishment of new-type rural financial institutions,when the management risk of the parent bank bailout, the risk can be loss of endogenous,reduces the risk of behavior mechanism. With the large number of the establishment ofnew-type rural financial institutions, competition leads to decreasing the enthusiasm ofcommercial banks to apply for the establishment of new-type rural financial institutions. Thereform policy can only use existing commercial banks to build the new type of rural financialinstitutions is extremely limited to increase rural financial services, and it is difficult tofundamentally change the commercial banks do not have the enthusiasm to enter the ruralfinancial market.By private enterprises initiated leading micro-credit companies, asking them to bankloan funds ratio does not exceed50%of its capital. The establishment of village banks in therestructuring, required by the existing banking financial institutions as the main sponsors, which can effectively control the petty loan company’s "deposit risk". Providing a legitimateinvestment channel to a large number of private capital, the actual development in all of newrural financial institutions in the most optimistic. Mutual agency provincial recognition is nothigh, explain the system design still has many problems, launched a drive is insufficient,control too strict, the original capital etc..Guangdong rural financial supply imbalance, has broad market space for thedevelopment of new financial institutions. Guangdong currently established more than20rural banks, but because the "franchise value" incentive to abate, the introduction of newsponsor difficulties, and the China Banking Regulatory Commission policy tilt, the firstwestern, Eastern underdeveloped; first order developed areas, developed area, Guangdongfuture rural bank for examination and approval of the establishment and development ofcompared to the previous limited. The micro-credit companies in Guangdong development isvery rapid, the coverage rate has reached85%, capital utilization rate was171%; guaranteeflexible manner, credit quality is good, in the service of the local economic development, tomeet the "play an important role in rural" and the small and medium-sized enterprise creditdemand. The main problem is that the financing channel is narrow, lack of follow-up ofloadable funds, and policy support is less, low profit, lack of development potential. The ruralmutual cooperatives for unmanned in Guangdong remains to promote, the pilot stalled, themain reason is that she too strict supervision, problems in system design, lack of farmers toapply for the pilot incentive; and the government to promote the will is not strong, policysupport is not enough. Finally, this paper summarizes five suggestions to promote the newrural financial institutions in Guangdong.