Documentary: How to solve the problems existing in the construction of rural financial ecology?
The theory of financial ecology vividly explains the important issue of financial environment construction, which is similar to the natural ecological environment, which is also a comprehensive embodiment of external conditions and infrastructure.
It includes the dynamic process and results of the interweaving of various factors such as organizational structure, legal environment, social credit, accounting standards, external audit, information disclosure, intermediary services, and bank-enterprise relations.
The importance of strengthening the construction of rural financial ecology.
1.Promote rural economic development.
The construction of rural financial ecology is very important for the development of rural economy, and the economic activities in rural areas are mainly based on agriculture, while the insufficient and unbalanced distribution of financial resources limit the development of rural economy.
Strengthening the construction of rural financial ecology can provide more financial resources, support the development of rural enterprises, promote the upgrading of rural industrial structure, increase the income of rural residents, and improve living standards. In addition, the construction of financial ecology can also promote innovation and entrepreneurship in rural areas, promote the development of science and technology and modern agriculture, and contribute to the sustainable growth of the rural economy.
2.Meet the financing needs of farmers.
The construction of rural financial ecology is crucial to meet the financing needs of farmers, who usually need to obtain financing to purchase agricultural production materials, expand the scale of farmland, and improve planting technology.
However, due to the lack of financial resources and the difficulty of obtaining credit, farmers' financing needs are often not met. Strengthening the construction of rural financial ecology can provide more financial services, including loans, credit cooperatives, financial products, etc., to meet the financing needs of farmers, promote the modernization of rural production, and improve the quality and output of agricultural products.
3.Promote the sustainable development of rural societies.
The construction of rural financial ecology plays a key role in the sustainable development of rural society, and the social development of rural areas faces many challenges, including rural poverty and rural population outflow.
Strengthening the construction of rural financial ecology can provide more financial services, support rural residents' entrepreneurship and employment opportunities, and improve the economic situation of rural society.
At the same time, financial services also help to improve the social credit awareness of rural residents, promote law-abiding and contract-abiding, and reduce defaults, which will help improve social harmony and stability and promote the sustainable development of rural society.
3. The main problems faced by the current rural financial ecological construction.
1.The distribution of rural financial resources is uneven.
The uneven distribution of financial resources in rural areas is a common problem, with most financial institutions preferring to set up branches in cities and counties, while more remote rural areas lack financial service points.
This has led to inconvenience in rural residents' access to financial resources and difficulty in obtaining financial support, especially for those living in remote areas, which not only restricts the economic development of rural areas, but also makes it difficult for rural residents to cope with the unexpected needs of life.
2.The financial legal environment needs to be improved.
There are certain deficiencies in the legal environment in the field of rural finance, especially in terms of regulations and law enforcement. This leads to a lack of effective supervision and restraint in the financial market, which increases the risk of irregular behavior in financial activities.
At the same time, the judicial protection of financial creditor's rights is weak, the court's efficiency in hearing financial creditor's rights cases is not high, and it is difficult to effectively safeguard the rights and interests of financial creditors. In addition, the lack of professional financial legal personnel and judicial personnel also leads to a lack of professionalism and precision in the handling and adjudication of financial legal issues.
3.The rural financial credit system needs to be improved.
In the field of rural finance, there is an imperfection of the credit system and a lack of social credit awareness, and these two problems are intertwined, which has an impact on the provision of financial services and the credit lending of rural residents.
The credit reporting system in rural areas is relatively underdeveloped, and it is difficult for financial institutions to accurately assess the credit risk of farmers.
Due to the relatively small credit history of rural residents, it is difficult for financial institutions to determine the credit history of loan applicants, which restricts the credit disbursement of financial institutions to rural residents and hinders the popularization of financial services.
In addition, the lack of credit awareness in rural society means that some rural residents may not pay enough attention to the spirit of credit and compliance, which leads to an increase in defaults, which not only poses a risk to financial institutions, but also affects the quality and sustainability of financial services, and further hinders the development of credit markets.
4.Information Disclosure Issues.
False information disclosure and abnormal changes in the relationship between banks and enterprises undermine the transparency of the financial market, increase the risk of investors and creditors, and damage the fairness and credibility of the financial market.
Misinformation disclosure means that rural financial institutions provide false and inaccurate information to investors and creditors, which may include manipulation of financial reports, concealment of business risks, etc. Misdisclosure not only undermines the transparency of financial markets, but also increases risks for investors and creditors, and undermines the fairness and credibility of financial markets.
The variation of the bank-enterprise relationship refers to the abnormal relationship between banks and companies, which is supposed to be mutually beneficial, which may include banks relaxing their loan reviews for companies in order to obtain higher returns, resulting in an increase in the non-performing loan ratio of enterprises.
Some improper bank-enterprise cooperation may also lead to unfair competition, waste of funds, and the accumulation of financial risks between financial institutions and enterprises.
5.Economic and financial dislocation.
Economic and financial dislocation refers to the mismatch and dislocation between the economic structure and the financial system in rural areas, this dislocation phenomenon may lead to the unreasonable flow of funds from financial institutions, excessive inflow of funds into the non-agricultural field, and ignore the financial needs of agriculture and rural enterprises in rural areas, this dislocation may lead to the unreasonable flow of funds from financial institutions, excessive inflow of funds into the non-agricultural field, and ignore the financial needs of agriculture and rural enterprises in rural areas, which not only wastes resources, It also makes it difficult for the rural economy to access financial support.
In addition, the dislocation of rural finance may also lead to the concentration of financial risks, if rural financial institutions invest a large amount of money in non-agricultural areas, and these areas are more risky, then financial institutions may face a greater risk of non-performing loans, and this concentration of risks may lead to the soundness of financial institutions being threatened, and then endanger the stability of the entire financial system.
Fourth, countermeasures for the construction of rural financial ecology.
1.We should speed up the reform of the rural financial system and establish a sound rural financial ecosystem.
1) Expand the coverage of rural financial institutions.
In order to ensure a wider range of financial services, it is necessary to strengthen the branch offices of rural financial institutions, especially in remote areas. This can be done by encouraging commercial banks, rural credit cooperatives and other financial institutions to expand their business in rural areas to meet the financial needs of farmers at different levels.
In addition, innovative approaches such as rural financial service sites or mobile financial service vehicles are introduced to improve access to financial services.
2) Promote the construction of a diversified financial system.
A diversified financial system can meet the financial needs of different levels and sectors in rural areas, including the development of rural credit cooperatives, which have deep roots in rural areas and can provide microcredit and savings services.
In addition, the development of microfinance companies is an effective way to meet the financial needs of rural enterprises and individual farmers more flexibly.
3) Introduce fintech.
The introduction of financial technology is playing an increasingly important role in the field of rural finance, and technical tools such as mobile payment and online banking not only improve the efficiency and convenience of financial services, but also shorten the distance between residents and banks, and reduce the waste of time and money.
In addition, the application of big data and artificial intelligence can help financial institutions more accurately understand the credit status of customers, reduce the uncertainty of credit assessment, and provide more customized financial products and services for rural residents, thereby promoting financial inclusion and sustainable development, and this trend of digital transformation has a positive impact on solving rural financial problems.