By Liu Shouying, China Economic Times, Zhang Liping, Research Institute of Finance, and Zhou Qunli, Research Department of Rural Economy, DRC

Research Report No.49, 2016(Total 4932)2016-04-13

Abstract: Rural credit system is a crucial component of China’s social credit system. Establishing and improving the rural credit system can lower the information asymmetry level of rural financial services, make financial services better shared by more people, reduce risks for rural households in financing costs and credit loans, and help farmers shake off poverty to lead a well-off life. To evaluate the effects of rural credit system building, we made field surveys in Anshun city of Guizhou province, as this city enjoys a complete rural households’ credit information system. We made a quantitative model analysis on data of rural household credit system building and credit loans between 2006 and 2015 in Anshun city and six counties and districts under its jurisdiction including Xixiu district, Pingba county, Puding county, Zhenning county, Guanling county and Ziyun county, with the aim of getting to know the performance of Anshun’s rural credit system building through an overall quantitative evaluation. The research findings show that in those counties with improved credit systems, the credit availability is high, the financing cost is lower, the non-performing loans ratio is lower and effects of poverty alleviation through financial means are more evident.

Key words: rural credit system, rural credit cooperatives, performance evaluation