Research On The Support Of Agriculture Business Development By Henan Rural Credit Union

The No.1 Document of the Party Central Committee put forward the "three rural issues" in 2017,which is the 14 th the Central No.1 document focusing on "three rural issues",the Party Central Committee pays more and more attention to the "three rural issues".At the same time,as an important agricultural province in China,the development of agriculture in Henan province is of great significance to the economy of Henan Province and our country.However,agriculture as a weak industry,its development requires a lot of financial capital,farmers have been excluded from the financial system because of the imperfect rural financial market in china.Henan Rural Credit Union is the only formal financial institution in rural areas of Henan Province,in recent years,it is also ongoing commercial reform.After the reform of the Rural Credit Union on the one hand facing the support of the "three rural" policy requirements,on the other hand facing the shareholders of the pursuit of profits,at the same time it is faced the choice whether to continue to development agriculture business,which led to discussion in academia that the Henan Rural Credit Union after achievement reform can continue to development agricultural business.So,this study is of great significance to the development of Henan Rural Credit Union and rural economy in Henan ProvinceThe study found that it is the inevitable choice for Rural Credit Union to develop agricultural business.First of all,it is the foundation of Rural Credit Union`s existence to develop agricultural business.Rural Credit Union grew up from rural areas,served the countryside,its development has a certain path dependence.Secondly,the cities have been more and more financial institutions,there is a big gap between the Rural Credit Union,such as financial strength,management level and the ability of risk control,it is very difficult for the Rural Credit Union to develop business from the countryside into the city.Third,the government give the Rural Credit Union the label about service of "three rural",and in the fifth Plenary Session of the 18 th CPC Central Committee for "13th Five-Year" planning proposal,put forward to develop Inclusive Finance,strengthen the rural financial services especially in poor areas,these polices bring some development opportunities to the Rural Credit Union.The development of agricultural credit cooperatives in Rural Credit Union can also promote the development of Rural Credit Union,in theory,there is a way through the development of agricultural business to achieve sustainable development of the Rural Credit Union,but the realization of the road needs to meet certain conditions: the internal conditions require the Rural Credit Union to reach a certain level of their own management,external conditions require the local rural economic development reached a certain level.Subsequently,when we research the development road of Henan Rural Credit Union,we found that the development of Henan Rural Credit Union can basically meet the sustainable development before 2013,but the main reason is that the state finance provide more preferential policies to Henan Rural Credit Union,the agricultural loans discount improves the operating conditions of Henan Rural Credit Union,after 2013,the policy of subsidies reduced,it is difficult to achieve sustainable development with the current operating conditions of Henan Rural Credit Union,therefore,the paper puts forward some policy recommendations for the development of Henan Rural Credit Union.