Savings mobilization in rural areas of China: Special reference to Chinese rural credit co-operative
2001
Gao, W. (Mie Univ., Tsu (Japan)) | Ishida, M.
Rural finance includes both allocation of credit and mobilization of savings. Many researchers have pointed out that no rural financial markets can be soundly developed without savings mobilization, and financial institutions depending on internal savings are more viable and efficient than those that depend on external funds from government, the central bank and foreign donors. In China, capital formation in the agricultural sector depends more and more on the savings mobilized in rural areas. This paper obtains a clear picture of current status of rural savings mobilization in China. This attempt will be done in the steps of showing quantitative growth of savings mobilized by rural financial institutions, analyzing the saving behavior of farm households and appraising the major policies and programs on this problem. Emphasis will be given to Rural Credit Co-operatives, for the reason that they have played the most important role in the mobilization of small rural savings from farm households.
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