What is worrying is that the hematopoietic mechanism has not kept up, and the original blood loss is also quite serious. There are many "blood pumping stations" in the rural financial market, and a large amount of funds flow out of the countryside, lacking the return mechanism and channels. The credit authority of commercial banks is constantly improving. There are few projects with good benefits below the county level, and they are increasingly becoming storage institutions. Rural credit cooperatives also save more and lend less, while postal savings only save but not lend. Data show that more than 300 billion yuan is withdrawn from rural areas through formal financial channels every year, and the total budget for supporting agriculture in 2006 is about 300 billion yuan. By the end of 2005, the national financial institution in loan-to-deposit ratio was 69.02%, and the rural financial institution in loan-to-deposit ratio was 56.3%, which was lower than the national level 12.72%. The average growth rate of loans from banking financial institutions below the county level is 9.72%, which is 15.66% nationwide, with a difference of 5.94%. Generally speaking, in recent years, the rural financial system's credit support for county economy has not been strengthened, but has declined. In the deposit market of county economy, a large amount of funds flow to cities through postal savings and state-owned commercial banks, which makes the development of county economy, which is already short of funds, worse.
2. The shortage of rural financial public goods leads to serious financial financialization. At present, most of the local finance in the central and western regions of China, especially at the county level, is grain finance. Under the layout that the central and provincial governments have the main financial resources, the county and township governments have weak financial resources but bear the funds for compulsory education and basic medical care, and of course they are unable to undertake infrastructure projects. Heavy rural debt has become an important factor affecting the development of rural financial institutions. Rural debt is mainly solved by defaulting on rural credit cooperatives, and debt financialization is quite serious. This practice directly affects the asset quality of financial institutions. Many public facilities projects led by the government and loaned by enterprises have formed a large number of non-performing loans. The mutual infiltration of finance and finance not only leads to the moral hazard of financial institutions, but also encourages the moral hazard of government departments. As a result, a large number of non-performing assets are formed, and bad debts are written off by the finance, resulting in waste of resources and inefficiency.
3. The supervision of rural financial institutions is absent and the risk situation is serious. The asset quality of rural financial institutions is generally not high. By the end of 2005, the NPL ratio of Agricultural Bank of China was 26.3%, and that of Agricultural Development Bank was 54. 1%, which was much higher than that of peers. Meanwhile, the capital adequacy ratio of rural financial institutions is seriously insufficient. Relevant financial experts said that "it is difficult to say how much the capital adequacy ratio of urban and rural financial institutions is different, because rural financial institutions are basically negative; The main financial risks of China's banking industry have shifted from non-performing assets to unbalanced institutional development, unbalanced regional development and unbalanced urban and rural development. " At present, the government lacks effective supervision over rural financial markets. After the reform, rural credit cooperatives were managed by local governments, but they were not given supervision functions. This institutional arrangement allows local governments to arbitrarily intervene in the daily business activities of rural credit cooperatives, but they do not have to bear the corresponding risks and costs. If the management authority of the provincial association is not restricted and standardized, a new round of large-scale losses will be inevitable. At the same time, the lack of rural financial supervision has also contributed to the activity of private finance, and some private financial activities have become hotbeds of underground economy. In particular, the phenomenon of usury not only increases the production and operation costs of capital users, but also accompanies other criminal phenomena.
4. Unreasonable institutional layout, overlapping functions and lack of cooperation. At present, financial institutions that set up business premises in rural areas generally include: Agricultural Bank, Agricultural Development Bank, rural credit cooperatives and postal savings. In addition, the personal business of China Development Bank and Export-Import Bank involves rural business. Among them, Agricultural Bank of China is a commercial bank, and the profit-seeking nature of commercial capital has prompted it to fade out of the countryside and turn to county finance. As the only policy bank specializing in supporting agriculture, Agricultural Development Bank has gradually evolved into a "grain purchasing bank" with a single business. Rural credit cooperatives have almost become the only formal financial organization in the rural financial market, but their operation has obvious geographical restrictions, heavy burden and weak strength, which can not meet the financial service needs of rural development. In rural areas, the dominance of rural credit cooperatives has actually taken shape, and the rural financial system that provides differentiated financial services for different customers and needs has not yet taken shape, resulting in insufficient rural financial supply, single financial products and poor service quality. Agricultural Development Bank is unable to engage in agricultural infrastructure construction and poverty alleviation and development, while Agricultural Bank and rural credit cooperatives, as commercial institutions, undertake a large number of policy financial services. Policy finance is indistinguishable from commercial finance, which greatly reduces the efficiency of commercial finance. Under the pressure of policy, Agricultural Bank of China and rural credit cooperatives have undertaken some policy businesses after the commercialization reform, but driven by the interest mechanism, the proportion of loans for supporting agriculture has decreased year by year.