What are the problems of rural finance that should not be ignored?

1. Imperfect financial service system

In the period of precise poverty alleviation, the role of rural finance is mainly focused on driving poor households out of poverty, the way is mainly to take the distribution of financial subsidies and give poor households to issue breeding subsidies, such as in the form of livestock cubs issued to poor households, or the issuance of small low-interest loans. At this stage, those who enjoy financial services are mainly poor households, and financial services are characterized by localization, regionalization and unsustainability. With the completion of the poverty eradication task on schedule, rural financial support should focus on comprehensiveness, support for rural industrial development, ecological development, infrastructure development, farmers' own development today to consolidate the hard-won results of poverty eradication and articulation of rural revitalization.

However, the current rural financial market system is still not perfect, rural and rural households have a strong demand for funds, but the financial supply is obviously lagging behind, there is a certain financial exclusion phenomenon. In the period of precise poverty alleviation, poor households were included in the financial service system, but with the arrival of the new stage, in the face of a large number of financial needs, the phenomenon of financial exclusion is highlighted. In terms of the distribution of financial institutions, traditional and informal finance coexist, while agriculture-related financial institutions, such as the Agricultural Credit Union, have an ambiguous role, an imperfect internal corporate structure, and services that intersect with commercial banks and the four major banks. The low profitability, low investment value and high risk of agriculture make banks reluctant to get involved. Informal finance, on the other hand, manifests itself in the form of private lending and borrowing, which carries a certain degree of risk. The lack of effective supply of rural finance has always been one of the shortcomings of the modern financial industry.

2. Serious homogenization of rural financial products

The implementation of rural revitalization in the context of the revitalization of the main body is still a small farmer, in the small farmer production practice, failed to build a financial service system around the production logic of small farmers, can not resolve the risks of the production practice of farmers. The idea of financial services is still oriented to the elite, the financial institutions have a single form of products, not many types of funds for the subsequent processing of agricultural products, and a lack of financial products for agricultural production, which do not fit well with the needs of farmers. Farmers need credit for a longer period of time, and there are not many financial products for such farmers. In the face of the diversified financing needs of rural revitalization, financial services do not match them. New agricultural business entities, as loan targets of financial institutions, often take the form of private lending, for the reason that they do not go through approval and other procedures. However, the lending rate is not governed by market interest rates, there is a certain risk, is not conducive to the effective cultivation of the rural financial market.

3. Lagging rural credit system construction

Due to the lack of understanding of credit work, some farmers often incorrectly report relevant information out of consideration for personal information security, which increases the difficulty of information collection and leads to inaccurate credit information. Some of the staff of rural financial institutions are not highly educated or experienced, and lack enthusiasm and low efficiency in collecting credit information from farmers, which may lead to the risk of adverse selection. In addition, the inability of farmers' assets in rural areas to enter the market is also a major problem. With the implementation of the newly revised Rural Land Contracting Law, the personal assets of farmers have been invariably appreciated, and from a legal point of view, it will become possible to use the residential land as collateral for financial loans in the "three rights of separation", but there is still a lack of corresponding legal backing for the entry of the residential land into the market and the assessment of the actual value of the residential land, and the rural property rights attached to farmers cannot be proved, which affects the lending of rural residents. Unable to prove, affecting the accessibility of loans for rural residents.

4. The level of rural governance constrains the development of rural finance

Effective governance is the foundation of rural revitalization, a prerequisite for carrying out grass-roots village affairs, and concerns the future development of the grassroots. In terms of credit for individual farmers, for financial institutions, the vast majority of banks have not set up branches in townships, and rural finance has always been the short board of the modern financial system, resulting in excessive supply costs.