This year's Central Document No. 1 proposes to accelerate rural financial innovation. These include in-depth advancement of pilot projects for contracted land management rights and peasant housing property rights mortgage loans, exploration of large-scale agricultural machinery, agricultural production facilities mortgage loans, support for financial institutions to develop order financing and receivables financing businesses suitable for new types of agricultural operations, Encourage financial institutions to issue special financial bonds for agriculture, rural areas and farmers. For a long time, due to "high costs, high risks, and low benefits," rural financial services are one of the weak links in China's financial system. In particular, with the acceleration of agricultural modernization, the financial demand for rural economic development has become more robust, and financial institutions are required to accelerate the innovation of products and services in response to the current pains and difficulties of rural finance. "Promoting rural 'two rights' mortgage loan pilots will be the focus of rural financial innovation in 2017. Banking financial institutions should comprehensively consider factors such as mortgageable maturity, loan use, loan risk, etc., in mortgage business models, product tools, risk control, and Accelerating innovation in supporting measures. "Said Dong Ximiao, a visiting researcher at the Chongyang Institute of Finance at Renmin University of China. Financial innovation is inseparable from the improvement of infrastructure and policy environment. Document No. 1 of the Central Committee proposes to accelerate the identification of ownership of various types of resources and assets in rural areas, and to promote the sharing and sharing of authority confirmation information with banking financial institutions. Promote the establishment of trust users, credit villages, and credit towns. Dong Ximiao said that the various rural reforms that China is promoting will create the institutional foundation and market environment for rural financial innovation. However, there are still some problems in rural finance, especially the rural credit system, such as weak farmers' credit consciousness, insufficient foundation for the construction of credit reporting systems, and relatively high credit thresholds for financial institutions. Document No. 1 of the Central Committee proposed strengthening the incentive and restraint mechanism to ensure the continuous growth of the "three rural" loans. Support financial institutions to increase county-level outlets and appropriately decentralize county-level branch business approval authority. For financial institutions with a lot of agriculture-related businesses, further improve differentiated assessment methods. Implement the incremental reward policy for agricultural loans. In fact, in recent years, the state has continuously introduced financial support for agriculture policies, and China's rural financial services have greatly improved, and the availability of farmers' loans has continued to increase. According to the statistics of the China Banking Regulatory Commission, as of the end of the third quarter of 2016, the balance of agricultural loans in banking institutions across the country was 27.6 trillion yuan, an increase of 8% year-on-year. Giving play to the engine role of finance in advancing structural reforms on the supply side of agriculture requires extensive coverage of agricultural support institutions. While emphasizing the "main force" role of large financial institutions such as China Development Bank, Agricultural Development Bank, Agricultural Bank, and Postal Savings Bank, the No. 1 Central Document proposes to support rural small and medium-sized financial institutions such as rural commercial banks, rural cooperative banks, and rural banks Based on the county territory, we will increase our efforts to serve the “three rural issues”; promptly study and formulate the reform plan of the rural credit cooperatives and provincial cooperatives; optimize the establishment of village and township banks, and increase the coverage of counties and cities. The development of rural finance also requires the government to improve the "top-level design." Dong Ximiao believes that it is necessary to establish rural financial evaluation indicators and give certain tax incentives to actively develop rural financial services; establish a government-led micro-credit guarantee system to improve the rural financial risk compensation environment; improve rural financial infrastructure and basic systems, and build rural Credit information system, etc. It is worth noting that the No. 1 Document of the Central Government also proposed "actively promoting rural financial legislation". Dong Ximiao said that it is a common practice in mature countries to regulate and protect rural finance with laws. "At present, China does not have a unified rural financial law. The next step should be to pass rural financial legislation, to clarify and increase the government's methods and channels to support rural finance, to accelerate the construction of rural financial infrastructure, to increase rural financial system innovation and business innovation, and to standardize The behavior of rural financial markets promotes the common development of diverse subjects such as policy finance, cooperative finance, and commercial finance. "

 

Source: China Orders Agricultural Network Editor: Li Zhihao