Development and challenges of the grass collateral loan system in China rural credit cooperatives: Consideration from fieldwork in Inner Mongolia livestock regions
2016
Balajiniima (Tokyo University of Agriculture and Technology (Japan)) | Kato, N.
There are limited studies on rural finance institutions of the Inner Mongolia Autonomous Region, China. In particular, livestock farming is one of the least well documented areas, empirically. Based on the survey conducted in the Khoboot Xar district in Inner Mongolia, this study empirically explores the situation and issues surrounding the newly started financial scheme of the grassland collateral loan program. Based on the analysis on survey data, the study found that the grassland collateral loan program is mainly provided to stockmen with higher sales rather than those with larger grassland. This result shows the cautious lending behavior taken by Rural Credit Cooperatives because of their limited financial resources and expertise on grassland assessment. Financial management by the Cooperative needs to be improved along with further governmental provision of financial resources in order to bring wider benefit to local communities.
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