Research On The Substitution Of Emerging Internet Finance For Traditional Rural Finance

Farmers' financing difficulty is a prominent problem in the development of China's rural financial market.According to?The report on China's rural family financial development?,only 27.6% of farmers are able to obtain loans from traditional rural financial institutions,which makes it difficult for farmers to meet their credit needs.With the rapid development of rural economy and the deepening of rural financial service reform,the traditional rural financing model has been difficult to meet the needs of rural economic development.In order to solve the problem of farmers' financing difficulty,it is urgent to innovate the financing mode of rural areas in an all-round way.China has also introduced a series of reform policies to offer Suggestions for rural financing.The reform of rural collective property rights system provides a new mortgage guarantee method for rural financing.The banking reform has given birth to a group of new rural financial institutions,such as village Banks and mutual aid societies,which are quietly changing the rural financial system.It is particularly noteworthy that with the deepening of Internet finance,the emerging financing mode based on Internet finance thinking in rural areas is also quietly rising.Based on the review of rural financing constraints,the limitation of traditional rural financial institutions and rural financial development of the Internet,such as literature research at home and abroad,on the basis of analysis the traditional financial services in rural areas in China is difficult to meet the demand of farmers,under the background of Internet technology to produce the rural emerging Internet financial model to provide ideas to solve this problem,the emerging Internet financial model for the influence of the traditional rural finance is becoming more and more big.In order to clarify the rural emerging Internet finance and relationship between the traditional rural finance,this paper respectively from the Angle of theory and empirical analysis,the emerging Internet to the traditional financial rural financial institutions to form the certain substitution effect.The theoretical level,studies the emerging Internet financial model can effectively solve the shortage of the traditional rural financial institutions services,alleviate the degree of information asymmetry in the rural area,in the empirical level,the study of rural emerging Internet can effectively alleviate the farmer's financial investment and consumption liquidity constraints,to a certain extent,solve the problem of peasant households financing difficulties.