Professor Muhammad Yunus of Bangladesh due to the creation of the world's first rural bank -- the Grameen Bank obtained of this year's Nobel Peace Prize. Professor Yunus and he founded the Grameen Bank through the development of microfinance, the large number of poor people out of poverty in bangladesh. At present, the world has more than 20 countries follow the Grameen Bank model to establish the system of rural credit, for peasants to shake off poverty and become rich provides a effective financial channels. This reminds me of Chinese, especially in the vast rural areas, including microfinance private financing is still in a semi open state. A support point and the new rural construction, is to have financial support.
National rural fixed observation point provided by the data show that in 2003, financing for China's farmers, on average, from banks in the proportion of 13.89%, the proportion of rural credit cooperatives from 18.9, and from the proportion of private lending is as high as 65.97%. Private lending activity, which has a huge market demand.
In the formal financial institutions can not meet the demand of allowed underground banks and other private financial institutions open and legalized, with important significance: first of all, you can fill the shortage of our country and below the county level financial institutions, for small and medium-sized enterprises to provide lawful financing channels, to meet the development needs. China's state-owned department for economic growth contribution rate of about 40%, but its loans accounted for about 80% of the legitimate total loans of financial institutions; non state sector contribution to economic growth rate is about 60%, the loan only accounted for less than 20% of the legitimate loans from financial institutions. Therefore, development of private finance is effective way to solve the loans to small and medium-sized enterprises. Secondly, it is also a wise choice to expand private investment channels. Private capital has become the third force outside the transnational capital of state-owned capital, the. At present, our country urgently need new financial organizations have to find a way out for private capital, and current financial organization of our country most of the existence of the problem of value creation capacity is low or the risk is too big, the low rate of return on capital, and the safety of the funds must not be guaranteed. Again, the legalization of private financing not only conducive to the regulation and supervision of private financial institutions operation, prevent the occurrence of the phenomenon of swindling; it will also contribute to the folk financial markets according to the rules of the economic operation and development in the competition, to prevent usury. There are also conducive to understanding of relevant state departments of private capital flows.
Folk financing reason not to "name" is one of the main factors is the financial authorities worry let go of folk financing will illegal fund-raising, to disrupt the financial order of things. Generally speaking, private financial institutions especially rural financial institutions face a large number of highly dispersed, small scale, little demand amount of loans and the lack of guarantees and collateral farmers, which determines the existing formal financial institutions to farmers' financing transaction costs are relatively high. In addition, agricultural production is seasonal, long period, affected by natural resources and the serious natural disasters, the level of farmers' income and overall low volatility, also increased the risk of financing.
The financial authorities worry that although there is some truth, in some places the underground Zhuang indeed there have been high interest to solicit deposits or usury, but relevant research and Wenzhou's rural credit cooperatives deposit floating interest rate reform results show that, as long as the existence of financial institutions between competitive and clear property rights, property rights in place, interest rates to solicit phenomenon and so would not be climate, because interest rates to solicit deposits led to financial institutions, the cost of a substantial increase, thus leading to the lending pressure surge, but cannot obtain the survival needs of the deposit and loan spreads.
According to the statistical analysis of the world bank, the past 40 years, in many countries, the government guide the formal financial institutions to provide loans to private almost did not achieve the desired effect. Therefore more feasible strategy is that countries relax the market access of financial institutions, financial institutions to promote the private economy in.
China is the lack of a complete and adapt to economic development and financial system. Big banks are too big, can not take into account the small and medium-sized enterprise loan; small banks are too small, can not meet the needs of the present. In this regard, we should reform the bank management system, on the other hand to open private finance. To encourage and support the development of non state owned private banks and private investment institutions, through the development of non state owned or private economy, to resolve the stock risk, improve the overall quality and efficiency of economic growth.
So, is a pressing matter of the moment should be legitimate private finance the real, in-depth exploration of supervision mechanism for the development of private finance. First of all, to clear the legal status of private finance from the law, make friends between lending and financing between farmers, cooperation, private banks and other private financial institutions from the ground to the ground. Can not see the risk problem off. In fact, private financial institutions, the problem is not into itself, and more is the lack of effective supervision and regulation. Secondly, allow private finance more flexible interest rate floating range. Folk financial information and transaction costs are very high, and generally have no mortgage, the high cost and risk should correspond to the higher income, private financial interest rates higher than interest rates of national finance is very normal, not regarded as usury.
Reportedly according to the deployment of the central bank, in Sichuan, Shanxi, Shaanxi, Guizhou Province has the folk capital credit pilot, the pilot to people conveys the a message: the state will give private financing certain growth space. Maybe it won't be long before we can see a test of private financial institutions and private financing form.
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