Practical analysis on rural consumption credit supply of China

There are many shortages in consumption credit market, the emerging capital market in our country after development for more than 20 years. During the process of enlarging domestic demand, it is urgent for upgrading the rural consumption structure and economic development to develop the rural consumption credit. After the economic and practical analysis on the influence of policy effect to the supply of consumption credit, the formal financial institutions need to offer credit support for the rural production goods and consumption goods which are suited for the local production requirement according to the local production condition. A well operated financial system is the prerequisite for developing rural consumption credit. In order to satisfy the need of validity and make full use of the existed rural financial resource, the traditional rural formal financial institutions are still the driving forces as the supply of rural consumption credit. This paper sets up the rural consumption credit system and risk management system in our country through emphasizing the financial development level and outer condition of the consumption credit supplied by rural formal financial institutions.