China's Rural Financial System

Households' Demand for Credit and Recent Reforms

By Yuepeng Zhao

© 2016 – Routledge

172 pages | 14 B/W Illus.

Purchasing Options:
Hardback: 9780415547932
pub: 2010-09-07
US Dollars$160.00
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About the Book

This book examines the credit needs and the borrowing behaviour of rural households in China in recent years. It is based on in-depth analysis of the status of households’ indebtedness and borrowing behaviour; the performance of Rural Credit Cooperatives (RCCs), as well as resources of informal finance. Before 2006, RCCs are virtually the only source of formal credit for rural households in China and were subject to a series of reforms from 1996 to 2003. The reforms aimed to transform RCCs into market-oriented institutions and, more importantly, help them meet the increasing demands of farmers for varied financial services, and thereby contribute effectively to economic transformation in rural China.

Based on a micro-study of three villages, at different stages of development with dissimilar economic characteristics in Jiangxi province, this book investigates the sources of finance, formal and informal, in rural areas and the different types of credit that farmers require. It examines the patterns of credit required by rural households at different stages of agricultural processes, and the institutions from which they obtain loans. It demonstrates the importance of innovative institutional arrangements in rural China and new instruments that give farmers access to formal rural financial markets and enable them to utilize credit effectively, concluding that further reforms to RCCs are necessary for RCCs to be truly effective.

Table of Contents

1. ‘San Nong’ Problems and the Challenges of the Rural Financial System in China 2. Literature Gap and Research Objectives 3. Fieldwork Villages, Procedures and the RCCs’ Pilot Program in Jiangxi 4. Households’ Indebtedness and Borrowing Behaviour in the Natural Village of Yao 5. Households’ Indebtedness and Borrowing Behaviour in the Natural Village of Wulitang 6. Households’ Indebtedness and Borrowing Behaviour in the Natural Village of Xiaobu 7. Analytical Summary of the Three Villages 8. Conclusion

About the Author

Yuepeng Zhao works in the Policy Research Department at the China Banking Regulatory Commission, Beijing, China. She was formerly Research Fellow at the University of Cambridge, UK.

About the Series

Routledge Studies on the Chinese Economy

The primary aim of this series is to publish original, high quality, research-level work, by both new and established scholars in the West and East, on all aspects of the Chinese economy, including studies of business and economic history. Works of synthesis, reference books and edited collections will also be considered. Submissions from prospective authors are welcomed.

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Subject Categories

BISAC Subject Codes/Headings:
BUS044000
BUSINESS & ECONOMICS / Economics / Microeconomics
BUS068000
BUSINESS & ECONOMICS / Development / Economic Development
SOC008000
SOCIAL SCIENCE / Ethnic Studies / General