Research On The Dynamic Mechanism Of Rural Finance-linking

The problem of credit restraint is widespread in rural areas of China.In the years of financial system reform of environment,our country rural financial service system framework is formed,but China's farmers financing problems were not resolved from the root,vast rural areas still exists the problem of credit rationing.Investigate its reason,is not the shortage of funds,but because the cash flow phase impeded the influence the efficiency of capital flows to the rural,formed the asymmetric information constraints,significantly increased transaction costs lead to financial services,credit business due to the lack of compliance collateral,difficult to achieve breakthroughs in business scale,make it hard for farmers to be the object of financing of Banks.However,informal finance has a small scale and limited functions,and it is difficult to meet the credit demand of farmers.Chinese farmers have been facing the problem of credit constraint for a long time.Therefore,we need to innovate the financial loan model and establish a sustainable financial mechanism so as to continuously provide funds for rural areas and meet the credit needs of farmers.Through the financial bond,the formal financial institutions capital advantage and informal financial institution information advantage,thus reducing the rural financial market information asymmetry and transaction cost,can realize to the expansion of peasant household loans.In 1986,the Asia Pacific credit association(APRACA)formally adopted this recommendation and implemented it in southeast Asia,India,Latin America and other places,with good results.In China,financial linkages have also developed in different regions,and various models have emerged,which have effectively alleviated the credit rationing of farmers.However,the development of the financial bond is not smooth,the two sides status inequality,risk income distribution is not balanced,the related policy system is imperfect and so on,lead to financial binding contract agreed upon some difficulties and constraints.Firstly,this paper introduces the realistic background of financial linkages in China,and sorts out relevant literatures at home and abroad,and systematically expounds the research significance and research trends of financial linkages.By means of normative analysis,the concept and characteristics of financial linkages are analyzed,and the internal mechanism and logic of financial linkages are revealed.With the combination of normative analysis and empirical methods,according to 314 in shaanxi yanliang microscopic investigation data,identify the peasant household borrowing hierarchy of needs and lending decision behavior characteristics,and through the logit model further analysis the influence factors of the farmer's financial link to participate in power,from the perspective of farmers financial coupling dynamic mechanism of related conclusions and Suggestions.This paper discusses the realistic difficulties of financial linkages,analyzes the risk sharing mechanism and risk sharing ratio of financial linkages,and designs the risk sharing mechanism of financial linkages.This article research conclusion has the following several aspects: information asymmetry and transaction cost is the financial link to realize the main dynamic factors,new classical contractual relationship between Banks and households,need a intermediary nature of the system,to establish a governance structure,the informal financial institutions in rural financial market information and supervision advantages,can make up the defects of Banks face the peasant household loans,informal finance also has access to bank funds at a lower price,the complementary function.Farmers' financial link behavior is the result of farmers' choice of financing channels,which will be affected by farmers' personal characteristics and external financial environment.The age of farmers,cultivated land area,whether to join the cooperatives,understanding of the cooperative degree,loan rejection experience positive influence on farmer's financial link behavior,family labor,income stability and formal credit experience negative impact on the farmer's financial link behavior.In the process of financial connection,the guarantee ratio of informal finance depends on the loan interest rate and the bank's compensation rate.The higher the bank's compensation ratio,the higher the share of informal finance.When the bank's compensation rate is close to the loan interest rate,the smaller the informal financial allocation proportion is,because the two sides of status inequality,imperfect policy,Banks tend to require too much risk of non-formalfinance,in order to promote and guide the development of the financial bond,the government needs to provide a certain amount of risk.It is concluded that the following policy recommendations: first,to strengthen the formal financial institutions in the dominant position of the rural financial service industry,identify problems arising from the risk of financial service mechanism,and the improved,so as to realize the improvement of the financial risk management system;Secondly,we should clarify the legal status of informal finance and attach importance to its intermediary role.Third,transform government functions to create conditions for financial linkages.Fourth,strengthen the infrastructure construction system of rural financial development.