ANALYSIS OF RURAL FINANCIAL LINKAGE BEHAVIOR WITH FARMER SPECIALIZED COOPERATIVES AS INTERMEDIARY (G20)

Abstract

Cooperation between farmer specialized cooperatives and financial institutions is one of important modes of rural financial development, which provides an important way to address problem of loan financing for Chinese farmers. Based on China's agricultural industry chain and taking financial linkage behavior as a link, it effectively connects body of capital supply and demand organically and forms relatively complete dynamic mechanism, performance guarantee mechanism and operation mechanism, which can effectively alleviate problems of insufficient collateral of farmers' loans and information asymmetry of capital supply and demand parties in rural credit market. In addition, it can reduce supervision cost and transaction cost in whole credit process, improve repayment rate on schedule, and ensure sustainable development of rural credit market. Chinese farmer specialized cooperatives should be supported by government to promote their behavioral intention of financial connection and strengthen their ability of financial connection so as to better solve farmers' demand for credit funds in rural financial market.