Research On Family Self-credit Rationing And Behavioral Result

The incomplete and inefficient rural credit markets of China lead the majority of farmers to face a serious credit rationing.Domestic and foreign studies have shown that the formal credit rationing of rural households is affected by bank and farmers.Farmers' Self-Credit rationing is a phenomenon that farmers have no incentive to apply for bank loans when they have exogenous funding requirements,due to consideration of transaction costs,business risks,and loan rejection rates.Unlike the credit rationing behavior implemented by the supplier,the Self-Credit rationing is the autonomy decision of the farmer,which is the result of the farmers' choice.Based on the theory of financial restraint and the theory of Credit Rationing,this paper studies the Self-Credit rationing behavior of farmers from the perspective of credit demand side.Based on the questionnaire survey of farmers in 60 counties in 13 cities and towns in Henan Province,the Credit Rationing types of Henan farmers were analyzed and screened.It was found that the farmers in the sample area faced bank Credit Rationing and Self-Credit rationing;of which there are 289 self-credit rationing households,accounting for about 70.0% of the credit rationing households,accounting for 35.5% of the total sample,indicating that Self-Credit rationing is the main rationing type of farmers in Henan Province.Furthermore,the Logistic regression model was used to analyze the factors which influenced the Self-Credit rationing of farmers.The results showed that the farmer's education level,the actual area of cultivated land(forest land),the distance between bank and family,the experience of formal credit,the understanding of the number of beneficiaries of agriculture and other formal financial institutions and the number of loans and relatives can provide the number of friends and relatives to significantly affect the farmers by the probability of Self-Credit rationing.Farmers who implement Self-Credit rationing have two choices: First,exit the credit market;the second is to the informal credit market(relatives,friends,usury,etc.).Although informal finance is considered to be an inefficient institutional arrangement in McKinnon's theory,it is argued that informal credit plays an important role in alleviating the poverty of farmers and raising the level of farmers' welfare.On the basis of this,this paper further analyzes the influence of non-formal borrowing on the classification of farmers at different income levels by using the Quantile regression method as the explanatory variable.The results show that the number of non-formal financial loans with self-credit rationing is positively correlated with the increase of income.The lower income of the farmers,the less effect of income;the higher income of the farmers,the larger effect of income.However,compared to formal financial lending,the high interest rates and high risks of informal financial lending will reduce the benefits of borrowing from households.So,the introduction of self-credit rationing of farmers to lower interest rates and risk to the formal financial lending will bring greater income effect.In this paper,the author puts some suggestions on how to alleviate the self-credit rationing of farmers.The existing research on credit rationing is mainly focused on the credit allocation of banks and the credit demand of farmers.The innovation of this paper is to focus on the Self-Credit rationing of farmers' initiative selection and the behavior choice after self-allocation,which enriches the research perspective.To provide support for the alleviation of formal Credit Rationing in rural households in Henan Province.