Innovation of rural financial Products: path choice and institutional restraint

Dongfeng Village Bank experiment experiments on banks in Dongfeng Town Wen/Li Wenxhen hanbing as a new type of rural financial institution in Liaoning Liaoyuan area--Dongfeng Credit Village Bank since its establishment March 1, 2007, always in accordance with the purpose of serving "three agriculture",　　Through innovating the rural financial products, expanding the business continuously, exploring a new path which accords with the characteristic of its own business development, and has achieved the "double win" effect of promoting the rural economic prosperity and its own development and growth. The path choice of the village Bank innovation-Implementing the differentiated management in the countryside, the rural credit cooperatives as the financial main force that serves "three agriculture", has been shouldering the historical task of promoting and supporting the rural economic development for several years, taking advantage of its "dot-wide" advantages to occupy the rural financial market exclusively.　　Therefore, in the village bank after the establishment of a long period of time, business development is facing great difficulty. The village bank wants to win the living space for itself in the rural financial market, according to the characteristics of rural economic development needs and local reality, in the development path of innovation, in products, prices, services and credit on the implementation of differentiated management, to avoid weaknesses, and rural credit cooperatives, with "low interest" as the backing, in the optimization of credit structure,　　Innovative credit products to make a fuss, design a new reasonable and achievable financial products, on the basis of simple and practical, strive for short, flat, fast, through the new financial products so that the original financial products can not solve the financial problems of creative solutions. First, product differentiation development of new bundled credit products.　　The peasant household small credit loan, the farmer's UNPROFOR loan bundle together, through own superiority will the peasant household loan and the agricultural product distributor, the management enterprise contact, takes "the Bank + Company + The Peasant household" the form to promote the agricultural industrialization development and the countryside industrial structure adjustment. Agricultural dealers, associations, insurance companies, business enterprises in the village bank deposit deposit, and for farmers to guarantee, banks by margin of the amount magnified 10 times times, the loan to the company has business with the farmers, farmers with loans to buy the company's fertilizer, feed and so on, farmers and the company signed an agreement, in order to protect the interests of peasant masses,　　The company promised to sell fertilizer, feed and other means of production of farmers do not raise prices, do not pit farmers, do not harm farmers, sales prices slightly below market prices. Under the effect of credit mechanism of Dongfeng Honest Village Bank, it not only benefits the bank itself, but also strengthens the credit intension of order agriculture, promotes the formation of the new economic mode of "Company + Peasant household", and strengthens the new economic relationship between the company and the peasant household through the contents of the fund. In the industrial chain of "village Bank, peasant household, company and Village Bank", the sports form of physical movement and the core connotation of Monetary Fund movement are included, as well as the plane relationship between company and peasant household, and the three-dimensional combination of company, peasant household and bank.　　The formation of this industry chain makes the order agriculture in the Dongfeng County economic field have the substantial meaning, the adjustment of the industrial structure falls into practice. Developing credit model of "credit Community + peasant household" and solvingThe demand of farmers ' small loans. From the perspective of rural finance, a long time farmers "loan difficult" is a big reason is not qualified collateral.　　Dongfeng Credit Village Bank combined with this practice, explore the "credit Community + farmers" of the loan model, the establishment of the credit villages management measures, in accordance with the number of loans to the village group accounted for the total number of households, repayment rate and other indicators, in the county's 6 credit village. This model has the following characteristics: First, credit village farmers loan procedures convenient. With the fund through the village cadres agreed, as long as the home of the land use Certificate, property card, forest and other title documents, without evaluation, you can get loans, and can be used with the loan. The second is the high credit line. For the village farmers to provide the highest credit limit of 100,000 yuan, the lowest credit limit of 20,000 yuan, on the plantation loans according to the number of land acres of farmers in accordance with 400 yuan per mu of loans. The third is the low interest rate level. The lowest interest rate is 7.965, depending on the variety of household credit. The maximum is 9.2925. Four is to raise the farmer's credit consciousness. Peasant household Loans Village cadres, other farmers supervision, if the village has a family of farmers default, can not repay the loan, will abolish this credit village eligibility. The loan scope is broad.　　To the credit village, in addition to issuing the basic loans such as planting and farming, it also has a variety of consumer credit, such as building, marriage, land contract, student aid, medical treatment, purchase of agricultural implements, overseas services and operating loans. The credit model of "credit Community + peasant household" has achieved outstanding effect, as at the end of April 2009, Dongfeng Credit Village Bank for 6 credit villages 840 households accumulated loans of 35 million yuan, loan farmers accounted for the total number of credit village households 46%, of which the land contracted loans 4 million yuan, student, medical loans 300,000 yuan, The purchase of agricultural machinery loans 2 million yuan, overseas labor loans 400,000 yuan, farmers operating loans of 4 million yuan, aquaculture loans 19.3 million yuan, planting loans 5 million yuan.　　These loans not only meet the needs of farmers to prepare for spring plowing production, but also support the farmers ' other capital needs, and promote the development of local rural areas.　　Second, the price difference the loan interest rate of village bank and Dongfeng County other agriculture-related financial institution is lower than average 2%, 10,000 yuan one-year loan saves the interest expense more than 200 yuan, brings the real benefit for the farmer, thus increased the village bank's loan attraction. Third, the service differentiated active door-to-door service. Credit Village bank hires village village cadres as loan coordinators to form village-level financial service stations, by the coordinators to collect the village farmers Loan demand information, loan officers to meet the conditions of the loans farmers on-site business.　　At most once in Dongfeng County small Siping Town one day the village bank handles the loan business for the peasant household 102 pens.　　At present, the village bank has set up the financial service station and carried out the business in 135 villages of 229 counties in the county, the total beneficiary farmer 7306 households, occupies the county farmer's 8.9%. To hire experts to serve farmers. One is to hire pig experts in Dongfeng County has opened three free "big pigLearning ", a total of 150 people participated in the training, experts to farmers in the on-site guidance, has achieved high recognition of breeding customers; the second is to employ Jilin Agricultural University's domestic senior professor for Dongfeng County vegetables, fruits and perennial consultants, at any time for technical guidance, variety improvement, pest control to provide favorable protection.　　At present, the beneficiary households reach 7283 households, accounting for 9% of the number of households in the county. The countryside propaganda, expands the influence.　　Over the past two years, village and township banks have publicized 42 times in the countryside, issued promotional materials 60,000 copies, mobile service vehicles 100 times, the establishment of 12,000 customer information files, special breeding industry research 8 times, internal professional training 5 times. The difference of credit mode The village bank actively adapts to the change of credit demand of rural and peasant, innovate the following credit mode: One is to innovate the evaluation method of "Credit Village". On the basis of the percentage of the total number of loans to the village group, the repayment rate and the proportion of income increase, the village cadres, who were rated as credit village for three consecutive years, paid social insurance and carried out performance appraisal for them, thus promoting the cultivation and development of the credit village.　　At present, the county has already voted 6 credit villages, the number of credit villages planned for the end of 2009 reached more than 15.　　To support the development of Dongfeng Town Village Pig farms, Credit village and township banks have put loans 1 million yuan, so that the village pig farm from the original 7 to 10, the pig from the original 88 to 175 head, the herd piglets from the original 1600 head to 3,500, the net profit increase of more than 500,000 yuan.　　In good faith Village Bank's strong support, Dongfeng County melon Planting Base-Dongfeng Town Taihe village set up the Melon Association, the use of 800,000 yuan credit funds built 8 700 square meters of standardized greenhouse, increase farmers income of 600,000 yuan. Second, the farmers according to the rating of the credit. Based on the establishment of farmers ' credit files, the reputable farmers are graded according to the breeding scale, age and benefit, and the loan is issued according to the corresponding level.　　At present, village and township banks have to pig, cattle, chickens, deer and other farmers to give 208 of the credit, the credit limit of 49 million yuan, the cumulative grant of more than 73 million yuan.　　This year the village bank will further increase the credit line for credit customers, and with the credit farmers to establish a cooperative organization form the new 23个千 head Cattle Park, a million-head Deer Park, a new standardized melon greenhouse 50, 30 greenhouses, a large storage center 1, expand the size of breeding, enhance the impact of farmers rating credit. Innovation income and institutional restraint as at the end of May 2009, the Credit Village bank deposit balance is 208.11 million yuan, the loan pen number is 3078, the loan balance is 196.23 million yuan, achieves the county agricultural loan balance 17.6%, the non-performing loan rate is 0.14%, turns over the tax 260,000 yuan, realizes the profit 890,000 Yuan. More than 90% of all loans are made to farmers who have never borrowed money.　　The credit Village Bank in Dongfeng County has become another agricultural financial institution which supports the development of rural economy. But the village and township banks in the development of innovation in the faceThere are some institutional constraints which cannot be neglected. First, the lack of corresponding policy support, the survival and development of rural banks is not an excellent environment. The village Bank is a new type of rural financial institution that serves "three agriculture" as its duty, and should be supported. But in the business tax, the income tax levy aspect Compare is the commercial bank standard, cannot enjoy the similar tax preferential treatment which the nature organization like the rural credit cooperatives.　　UnionPay's membership dues also lacks the support of relevant policies, the finance to Agricultural Bank of China, rural credit loans to pay discount, but there is no clear provision of loans to village and township banks to pay discount, these are very detrimental to the survival and development of village and town banks. Second, the agricultural loan risk is big, there is no corresponding loan risk transfer, share and compensation mechanism. Agriculture is a weak industry, agricultural loans and other loans, compared with the natural conditions, production cycle and other objective factors, and the loan to bear the main body fragile, the ability to resist natural risks low. Once there is a large natural disaster, the income and loan security of the village bank will be greatly affected. Now the area of agricultural policy insurance only on farmers ' farming insurance and can multiply sow insurance, the state burden of 4/5, the individual burden of 1/5, encountered large natural disaster countries to give a certain amount of settlement, repayment of bank loans is not a problem. But for other animal husbandry do not give policy insurance, the coverage of policy-agriculture insurance is small, the enthusiasm of farmers ' participation is not high.　　Making agricultural loans difficult to release risks through insurance and reinsurance. (Levin Sheng unit for the Southwest University of Finance and Economics, School of Economic Mathematics, hanbing unit for the PBC Liaoyuan Center branch)