| The development pattern of Chinese rural financial reform has been conducted byvarious interest groups of financial institutions, rather than dominated by the rural financialdemand. Because of the ineffective reform, serious inhibition of rural financial demand andthe big gap between supply and demand of rural formal finance, the credit demand of thefarmers are satisfied by informal lending channels. The informal finance has stressed thesocial relations such as geography and kinship, and it has the superiority over the formalfinance on information symmetry of low risk, simple procedure and low cost of borrowing,thus, it can effectively manage the configuration of the fund, regulate the dislocation ofcapital configuration and the contradiction of the idle funds and financing difficulties amongthe farmers. It can meet the demand of farmers’ capital loan, so to some extent, it has made asignificant contribution to the rural economic development. However, the lacking ofsupervision, legal protection and other issues easily causes economic disputes and evenfinancial risks. In the countryside, the duration of rural community is long and the livingfamilies are relatively stable, the familiarity and information symmetry between villagers aremuch better than that of formal financial institutions, so we argue that private lending is oneof the important factors that affect the farmers’ credit demands.Nowadays, rural residents’ income and living standard have enjoyed a greatimprovement, in addition to the daily consumer spending, there is a strong capital requirementon investment in business and housing construction. The capital demand is strong but thesupply of formal financial is limit, under this circumstance, for a long time the borrowingneeds of rural residents are always meet by the folk channel from friends or relatives, so thereis a strong private lending requirements. Undoubtedly, it is significantly important to build thecooperation mechanism of formal finance and informal finance to effectively meet the lendingdemand of rural residents, and it is necessary to understand the influence factors of peasanthousehold borrowing and financial demand.The promotion of the reform of rural finance and the establishment of a modern ruralfinancial system depend on the research about the borrowing needs of peasant households,who are the rural financial main body, and also rely on the investigation in the influencefactors. In this paper, based on the field investigation data of515peasant households inGuangxi, we analyzed the influence factors of peasant household borrowing by usingLogistics model, investigated the similarities and differences between the formal finance and informal finance and explained the reasons for the differences. The results showed that thepeasant household’s condition and the economic characteristic have different effects on thecredit demand and the choice of credit behavior, moreover, there is a phenomenon of financialrepression. Based on the analysis of the behavior of peasant household borrowing in thisarticle, we suggest a financial service innovation which can meet farmers’ financial demandand put forward a policy recommendation which can deepening the reform of Guangxi ruralfinance, to promote the harmonious development of rural informal finance and formalfinance. |
