1. Analysis of problems existing in the implementation of my country’s main rural financial support policies in recent years

(1) Some policies have obvious temporary characteristics and limited amounts

For example, the Ministry of Finance's policy on bad debt write-offs and independent loan write-offs is only valid for small and medium-sized enterprises and agriculture-related loans issued by financial institutions (from January 1, 2008 to December 31, 2010) and identified as non-performing. The possibility of new loans in this time period forming bad debts in the near future is very small, which leads to the short-term result of this policy being "preferential but not beneficial"; the banking regulatory charging policy implements a certain charging policy for three years, and the current policy Expired in 2010; the pre-tax deduction policy for agricultural-related loans of financial enterprises and loan loss reserves for small and medium-sized enterprises is also implemented from January 1, 2008 to December 31, 2010; the tax exemption policy for rural credit cooperatives is divided into The pilot areas and the further expansion of the pilot areas will be implemented until the end of 2008 and the end of 2009 respectively.

(2) Some policies are still in the pilot phase or have limitations, and the benefits are limited

For example, the incremental incentive policy for agricultural-related loans was only available in Heilongjiang, Shandong, Henan, and Henan in 2009. Six provinces (autonomous regions) including Hunan, Xinjiang, and Yunnan Province were piloted. In 2010, three provinces (autonomous regions) including Jiangsu, Anhui, and Inner Mongolia were expanded into the scope of the policy pilot. Another example is that the targeted fee subsidies for rural financial institutions are only targeted at three types of rural financial institutions: village banks, loan companies, and rural cooperatives. It is obviously not suitable for rural credit cooperatives and rural cooperatives that serve rural areas and have a longer service time and more historical problems. Banks are unfair.

(3) Some policies lack detailed rules and integration, which affects the specific implementation effect

First, the lack of scientific definition of the connotation and extension of relevant concepts can easily lead to confusion in implementation. For example, regarding agricultural-related loans, in the pre-tax deduction policy for agricultural-related loan loss reserves, it specifically refers to loans to farmers, rural enterprises and various organizational loans counted in the "Special Statistical System for Agricultural-related Loans" (Yinfa [2007] No. 246); However, in the loan incremental incentive policy, agricultural-related loans specifically refer to loans issued by county financial institutions to support agricultural production, rural construction and farmers' production and life. The specific statistical caliber is subject to the provisions of the "Special Statistical System for Agricultural-related Loans". According to Yinfa [2007] No. 246 document, in addition to rural loans (loans to farmers, loans to rural enterprises and various organizations), agricultural-related loans also include agricultural-related loans to urban enterprises and various organizations. Second, some of the current rural financial support policies are vague in terms of payment and reward conditions; some procedural provisions are unclear and lack detailed rules and integration, especially the lack of democratic supervision from grassroots loan entities and the construction of a system for summary declaration, assessment and confirmation. ; Some have complicated review and approval procedures, inconsistent understanding among departments at all levels, more iterations, and higher implementation costs. All of the above have affected the effective implementation of guidance and incentive policies for rural financial services.

(4) The threshold set by some policies is too high, which affects the enthusiasm of rural financial institutions

For example, the incremental incentives for agricultural-related loans of county financial institutions and the targeted fee subsidies for rural financial institutions They all emphasize following the basic principles of government support, commercial operations, risk control, and adequate management, and set a series of conditions. For example, the incremental incentive policy for agricultural-related loans only “increases the average balance of agricultural-related loans of county financial institutions in the previous year by more than 10% year-on-year.” The 15% portion will be rewarded at a rate of 2% for county financial institutions whose non-performing loan ratio increased year-on-year at the end of the previous year. "Rural financial institutions' targeted fee subsidies will only increase year-on-year for the average loan balance of the previous year and reach Loan companies and rural mutual funds required by the CBRC's regulatory indicators, rural banks with a year-on-year increase in the average loan balance of the previous year, a loan-to-deposit ratio at the end of the previous year higher than 50%, and meeting the CBRC's regulatory indicators shall be subject to 2% of their average loan balance in the previous year. Provide subsidies". These two policies also designed two thresholds linked to loan growth and non-performing loan ratio. Obviously, due to the high cost and low efficiency of rural finance, they are not very attractive to financial institutions to support the development of agriculture, rural areas and farmers and improve the quality and level of rural financial services. It is also inconsistent with the original intention of the system design.

(4) Policy support for rural cooperative financial institutions needs to be further strengthened

First, financial support needs to be strengthened. On the one hand, due to the long-term inaccurate credit asset quality and statistical data of rural credit cooperatives, the amount of insolvency calculated based on the national rural credit cooperative statements at the end of 2002 is not the true amount of losses; on the other hand, the rural credit in the reform pilot areas has Half of the losses of credit cooperatives are obviously unable to be compensated by local governments and credit cooperatives themselves in the short term. Second, the financial support method needs to be improved. Different from supporting the reform of state-owned commercial banks, in which the state purchases and divests non-performing bank assets at book prices and uses foreign exchange reserves to inject capital into banks, the state adopts a "spend money to buy the mechanism" approach in terms of financial support for the reform of rural credit cooperatives, striving to Promote the implementation of reform measures. However, due to the limited financial support conditions and the hasty deadline of the transformation, the "spending money to buy the mechanism" can only achieve the expected theoretical effect in the short term.

2. Practice and experience of foreign rural financial support policies

In order to promote the development of rural finance, many countries have carried out long-term exploration and practice in the construction of rural financial support systems and accumulated gained many useful experiences.

Examining the actual lines and experiences of foreign rural financial support policies has important reference significance for the construction and improvement of my country's rural financial policies.

(1) Use administrative and legal means to enforce and guide rural financial services

First, the government supports the establishment of rural financial institutions. The United States, France, and Japan have all established government-funded financial institutions specifically to serve the development of “agriculture, rural areas, and farmers,” and have clarified the main body and market status of the rural financial system through legislation. India has promulgated the Bank Nationalization Act, which clearly stipulates that commercial banks must establish a certain number of branches in rural areas. The Reserve Bank of India requires commercial banks to open a branch in a city and must also open 2-3 branches in remote areas, otherwise the approval will be denied. The second is to enforce or guide financial institutions’ responsibilities in providing “agriculture, rural areas and farmers” financial services. For example, the Central Bank of India requires all banks, including foreign banks, to invest 18% of their loans in priority areas, that is, areas mainly related to agriculture. The American Community Reinvestment Act stipulates that all financial institutions must invest 15% of their loans in communities, and the government will reward financial institutions that meet the legal requirements.

(2) Use preferential fiscal and taxation policies to encourage and guide the sustainable development of rural finance

In order to increase the enthusiasm of rural financial services for "agriculture, rural areas and farmers", countries generally adopt fiscal and tax policies to encourage and guide the sustainable development of rural finance. Appropriate preferential treatment will be provided in terms of taxation, supervision and other policies. One is financial subsidies. Japan formulated an agricultural improvement fund subsidy plan in the 1950s, which stipulated that commercial banks engaging in low-interest agricultural loans could receive interest subsidies from the government, and losses caused by special bad debts could also be compensated by the government. The United States uses financial subsidies as a guarantee to leverage agricultural loans. Farmers can use unharvested agricultural products as collateral to obtain a nine-month "non-recourse loan" from an agricultural product credit company. When market prices are unfavorable, farmers can use The loan is repaid in cash for agricultural products, and the loan company obtains loss subsidies from the government. The second is tax relief. This is a preferential policy commonly adopted by various countries. Countries such as Thailand and the Netherlands have granted long-term tax exemption policies to major agricultural-related financial institutions. The U.S. tax law stipulates that commercial banks whose agricultural loans account for more than 25% of total loans can enjoy preferential tax treatment. Third, the government directly or indirectly allocates funds to expand the supply of funds to rural financial institutions. For example, the Japanese government provides financial support to agricultural-related financial institutions by providing low-interest loans and subscribing for low-interest loans. The U.S. Federal Land Bank may issue bonds and notes to the financial markets to raise funds.

(3) Focus on supporting cooperative finance as the basis of the agricultural financial system

The practice of many developed countries such as the United States, Germany, Japan and France has proved that the cooperative economy is the basis for organizing individual farmers , an effective organizational form for individual industrial and commercial households and small and medium-sized enterprises to develop the economy and participate in market competition. Most of the participants in cooperative finance are from the low-income and poor strata of society, and are the weak in market competition. Some economically developed countries such as the United States, Japan, and Germany have clarified that credit unions are public welfare legal persons not for profit and are exempt from taxation. For example, in 1937, the U.S. Congress decided to exempt credit unions from federal income tax and made clear provisions in the Federal Credit Union Act. At the same time, the main source of funds for American credit unions is the savings shares of their members. As a long-term liability, the owners’ equity consists of three parts: reserves, provident funds and undistributed surplus. It does not include savings shares, so members deposit The funds in credit unions are still nominally called "shares", and their income is "dividends" rather than interest, thus exempting them from personal interest income tax. These two tax-free features make credit unions quickly become the most popular financial institution. mechanism. With the support of the government, Japan has established a nationwide network of non-profit cooperative financial organizations rooted in rural areas, which play the role of the main credit channel in rural areas.

(4) Promote the standardized development of rural finance and avoid risks by improving the rural financial market environment

In order to continuously increase rural financial credit through various policies to force, encourage and guide At the same time, governments of various countries also attach great importance to the establishment and improvement of agricultural insurance, guarantees, and rural public information service systems in order to promote the standardized development of rural finance and avoid risks. First, support the development of agricultural insurance. The United States enacted the Federal Crop Insurance Act in 1938 and has since made several amendments to insure all crops. Japan promulgated the "Livestock Insurance Law" as early as 1929. After many revisions and supplements, the "Agricultural Disaster Compensation Law" has now been formed. The French government passed laws to implement agricultural insurance in July 1960. In 1964, it established an agricultural damage protection system, expanded the scope of insurance, and the National Agricultural Disaster Committee was responsible for compensating the losses of disaster-stricken farmers. In 1982, a law was passed to make natural disaster insurance compulsory. The French agricultural insurance system is basically composed of private insurance companies, with the government providing necessary policy support. The second is to improve the rural credit guarantee system. France guarantees agricultural and sideline product purchase loans provided by Crédit Agricole to agricultural cooperatives through local agricultural bureaus; the Japanese Government Agriculture, Forestry and Fisheries Credit Fund Association and the Agriculture, Forestry and Forestry Central Bank jointly funded the establishment of the Agriculture, Forestry and Fisheries Credit Fund (the Japanese government accounts for 83 %), providing financing guarantees to the agriculture and forestry central treasury system and supporting its issuance of agriculture-related loans. The third is to improve public information services.

Germany has established a rural-oriented public information service system, credit system, land mortgage registration system, etc. to provide a full range of information services for rural finance.

3. Suggestions on improving my country’s rural financial support policies by learning from foreign experience

International experience shows that providing rural financial policy support is an indispensable measure to promote rural financial reform and development. Therefore, we should fully learn from foreign experience, establish and improve rural financial support policies that are consistent with my country's actual conditions, and promote the effective allocation of financial resource elements to "agriculture, rural areas and farmers".

(1) Follow the principle of "Generalized System of Preferences" and further increase the coverage and intensity of preferential fiscal and taxation policies

We should follow the principle of "Generalized System of Preferences" and "accelerate the integration of fiscal and taxation policies with rural "Effective connection of financial policies", forming a synergy in terms of the direction and intensity of policy support and the way and timing of policy combination. One is appropriate tax incentives. Following the principle of the "Generalized System of Preferences", financial institutions that meet certain requirements for supporting agriculture will be given corresponding income tax and business tax concessions. The second is to expand the scope of targeted subsidies for rural financial institutions. All financial institutions that set up outlets in rural areas will be given certain cost subsidies to compensate for the operating costs of rural financial institutions. In particular, it is necessary to increase financial compensation for the outlets of rural financial institutions in the central and western regions, old, minority, border and poverty-stricken areas, and rural financial institutions that farmers really need but cannot achieve economies of scale. The third is to further increase incentives for county institutions to issue agriculture-related loans. The experience of the Ministry of Finance’s pilot program of agricultural-related loan incentives for county financial institutions in nine provinces (cities) including Heilongjiang should be promoted nationwide as soon as possible, and the award standards should be continuously improved. It is recommended that we first scientifically define the connotation, extension and characteristics of agricultural-related loans from a theoretical level to solve the different interpretations of agricultural-related loans by different support policies; secondly, analyze the operational obstacles and their root causes in the implementation of the incremental incentive policy for agricultural-related loans. , and then standardize the application and confirmation system for agricultural-related loan increments of various financial institutions; it is necessary to improve the reward standards again, and provide a 1% reward for the part within 15% of the increase in the agricultural-related loan balance of county institutions exceeding the previous year, and 15% A 2% bonus will be given to the above portion. The fourth is to combine the requirements of "further improving the policy that new deposits received by banking financial institutions in the county are mainly used for local loan disbursements", and give priority to financial and public fund deposits to financial institutions with strong efforts to support agriculture. It is suggested that the financial departments at the city and county levels should allocate the corresponding share of fiscal deposits according to the proportion of agricultural-related loans of each financial institution according to the "year-on-year deposit and loan" principle, so as to mobilize the enthusiasm of each financial institution to support agriculture. The fifth is to establish supporting mechanisms for agricultural-related loan projects. Special fiscal funds are allocated specifically for agricultural-related loan interest discounts and funding matching, reducing the risks of agricultural-related loan projects supported solely by policy loans and commercial loans, and increasing the enthusiasm of financial institutions to support agriculture. Sixth, the system of interest subsidies for agricultural-related loans and interest tax exemption on savings deposits will be implemented to transform interest rates from a financial means to a comprehensive fiscal and financial means to promote the development of the rural economy and increase the income of farmers.

(2) Follow the principle of "respecting history and facing reality", while improving the rural financial organizational system and focusing on policy support for rural cooperative financial institutions

The state's support for rural financial institutions While adopting the "Generalized System of Preferences" preferential policies, some separate support policies should be formulated for rural cooperative financial institutions. First, rural credit cooperatives, rural cooperative banks, and rural commercial banks that are established and restructured in accordance with the principle of serving "agriculture, rural areas, and farmers" are all included in the cooperative system and enjoy unified policy preferences and industry supervision. Because many of the current rural financial support policies, including tax incentives, financial support, deposit reserves, banking supervision fees, etc., are only available to rural credit cooperatives and rural cooperative banks transformed from rural credit cooperatives. However, rural commercial banks, which were also transformed from rural credit cooperatives, cannot enjoy this. At present, the country's overall direction for the reform of rural credit cooperatives is to adhere to the direction of joint-stock systems in accordance with market principles, and "strive to use 5 to 10 years to turn rural credit cooperatives into modern financial enterprises with clear property rights and distinctive operations in phases and batches." However, Because rural commercial banks cannot enjoy the same preferential policies as rural credit cooperatives and rural cooperative banks, it affects the enthusiasm of rural credit cooperatives and rural cooperative banks to transform into rural commercial banks. In fact, even if it is transformed into a rural commercial bank, according to national policy requirements and its own actual conditions, it will still mainly undertake the function of serving "agriculture, rural areas and farmers" and should receive the same preferential treatment as cooperative financial institutions. The second is to gradually remove various policy obstacles that restrict rural cooperative financial institutions. For example, in recent years, the national new rural social pension insurance pilot work has been progressing in a solid and orderly manner, but rural credit cooperatives have not been able to act as agents for the "new rural insurance" fund accounts due to policy obstacles, thus affecting the "new rural insurance" business to have greater social impact in rural areas. benefit. The third is to continue to extend preferential tax policies. At the end of 2009, the preferential income tax policy enjoyed by rural credit cooperatives expired, which affected the normal improvement of operations to a certain extent. We should continue to implement tax incentives for rural credit cooperatives in light of the characteristics of rural credit cooperatives, such as their heavy historical burdens and limited ability to support agriculture. The fourth is to support rural credit cooperatives in digesting historical burdens, resolve to solve the large number of non-performing asset problems caused by rural credit cooperatives due to institutional, historical and other factors, and compensate for the price they have paid for rural economic development.

(3) Implement different monetary and supervisory policies according to the special circumstances of rural financial institutions

In general, supportive and encouraging policies should be mainly adopted for rural financial institutions. Monetary and regulatory policy. The first is to implement different deposit reserve policies.

For county financial institutions with a high proportion of agriculture-related loans, we will continue to moderately lower the deposit reserve ratio and encourage them to increase the granting of agriculture-related loans. The second is to provide certain preferential treatment in terms of loan size and refinancing. In the process of regulating the total amount of credit, a certain preference will be given to the scale of agricultural-related loans, especially the scale of loans to rural households will be listed separately. We will improve the re-lending policy to support agriculture and effectively play the role of re-lending to support agriculture in guiding the increase of agricultural-related credit. The third is to implement different credit supervision policies. In view of the "short-term, small, frequent and urgent" characteristics of "agriculture, rural areas and farmers" customer loans, rural financial institutions are allowed to explore and innovate in credit management, product innovation, process improvement, and risk control. The experience of the People's Bank of China and the China Banking Regulatory Commission in launching innovative pilot projects for rural financial products and services in six central provinces and three northeastern provinces will be fully rolled out as soon as possible, and support will be provided in the approval and promotion of new products. The fourth is to implement different regulatory policies such as risk accountability and bad debt write-off. Non-performing loans among agriculture-related loans will be assessed separately. Simplify the write-off procedures, appropriately expand the loan time range of the preferential policy for writing off bad debts to rural financial institutions, and give rural financial institutions greater authority to write off bad debts. The fifth is to further establish and improve the supervision, assessment and evaluation system for the coverage of financial institutions’ agricultural support services in terms of outlets, services, loans, etc. The introduction of an assessment mechanism for new deposits taken by financial institutions within the county to be used mainly for local use ensures a sustained and stable increase in credit extension to "agriculture, rural areas and farmers". Establish assessment and supervision indicators that adapt to the characteristics of the "agriculture, rural areas and farmers" business. When the relevant national departments conduct performance assessments of state-owned commercial banks, they should distinguish the assessment indicators for agriculture-related business and urban business, fully consider the characteristics of low income of agriculture-related business, and avoid The assessment dampens the enthusiasm of financial institutions to support the development of "agriculture, rural areas and farmers".

(4) Establish a multi-level risk sharing mechanism in view of the natural vulnerability of agriculture

This must be solved by accelerating the development of agricultural insurance and guarantees, and establishing a catastrophe risk dispersion mechanism. . First, accelerate the construction of agricultural insurance. Improve the institutional arrangements for agricultural policy insurance and commercial insurance, comprehensively develop policy agricultural insurance with financial support, and actively expand the varieties and regional coverage of agricultural insurance premium subsidies; provide corresponding premium subsidies to commercial insurance companies that carry out agricultural insurance , reduce or exempt agricultural-related insurance business tax. Improve the agricultural reinsurance system and establish a financially supported catastrophe risk dispersion mechanism. Explore the cooperation mechanism between rural credit and agricultural insurance, and improve the risk transfer and sharing mechanism for agriculture-related loans. The second is to improve the "agriculture, rural areas and farmers" guarantee mechanism and effectively solve the "bottleneck" problem of financing guarantees for "agriculture, rural areas and farmers" customers. Explore the establishment of a diversified rural credit guarantee system that is policy-based, commercial, industry-based, and mutual-aid with government support and multi-party participation by enterprises and banks to reasonably disperse and transfer rural financial business risks. Explore the establishment of a guarantee mechanism in line with the characteristics of "agriculture, rural areas and farmers" and expand the scope of rural mortgage guarantees, including the development of forest rights, large agricultural machinery and equipment, land management rights and other mortgages and the promotion of chattel guarantees.

(5) In response to the imperfect rural financial security mechanism, strengthen the construction of the rural financial market environment

my country's rural financial ecological environment needs to be improved, and the rural financial security mechanism is imperfect and needs further improvement. Strengthen the construction of rural financial legal systems to provide support and protection. First, strengthen rural financial legislation and law enforcement. The United States, Japan, India and other countries have relatively complete legal systems regarding agricultural finance. At present, our country only has the "Commercial Bank Law" and no laws targeting other rural financial institutions such as rural cooperative financial institutions. We should consider formulating a special rural financial promotion law and supervision law to regulate the nature of rural finance, the responsibilities of financial institutions to support agriculture, and various rural financial institutions. Financial support and promotion policies are fixed in legal form. Strengthen law enforcement against violations of financial laws and regulations, improve the legal environment for rural finance, severely crack down on debt evasion, maintain rural financial order, and protect the interests of rural financial institutions. The second is to speed up the construction of rural financial infrastructure. Steadyly promote the establishment of electronic credit files for rural households and credit evaluation of rural households, promptly establish a credit reporting system for enterprises and individuals covering rural areas across the country, improve the punishment system for breach of trust, and increase the cost of breach of contract. The third is to promote the development of rural property rights market. Accelerate the confirmation and issuance of certificates for various rural transferable asset rights, improve the institutional arrangements for market-oriented transfer, cultivate transaction transfer platforms and institutions, establish a property and property price formation mechanism with rural characteristics, and effectively promote rural assets and rights Legally and orderly converted into tradable financial assets.