Читать книгу Rural Finance in Poverty-Stricken Areas in the People's Republic of China - Xuechun Zhang - Страница 39

The main challenges to the PRC’s current rural financial reform stem from the old financial administrative system, which was designed to support agricultural production with cheap money from the ABC (in the form of poverty reduction loans) and RCCs (in the form of small credit loans). Such an institutional design requires a highly centralized financial system, simplified financial institutions, and administrative management similar to that of government agencies.

The PRC’s traditional rural financial system is characterized by lack of competition, diverse demand, capital outflows, difficult access to credit, the need for government credit inputs, insider control, and a lack of an enabling operating environment. Monotypic institutions reduce competition in rural financial markets, and demand for diversified financial services cannot be met. Furthermore, government credit supplies cannot reverse the large outflows of funds from rural areas or relieve farmers’ difficult access to credit. At the same time, the “reform” of rural financial institutions under senior management that makes decisions without consulting shareholders has separated loan decision making from the interests of rural households.