An Empirical Study on the Revitalization of Rural Areas Served by Banking and Financial Institutions in Jingzhou City, Hubei Province

Jing ZENG

College of Economics, Yangtze University, Jingzhou 434023, China

Abstract In the implementation of the rural revitalization strategy, the banking and financial institutions in Jingzhou City, Hubei Province, under the guidance of the Jingzhou Branch of the People’s Bank of China, strive to improve and develop the financial service system adapted to the characteristics of the countryside in the new period. It has innovated financial service products, improved the quality and efficiency of financial services, increased financial support, and achieved remarkable results. On the basis of the investigation, combined with the relevant written materials and statistical data collected, this paper makes an empirical study on the reality of the city’s banking and financial institutions serving the revitalization of rural areas.

Key words Jingzhou City, Rural revitalization, Banking and financial services, Empirical study

1 Introduction

In the context of rural revitalization strategy, the banking and financial institutions in Jingzhou City, Hubei Province, under the guidance of the Jingzhou Branch of the People’s Bank of China, have made great efforts to strengthen the investment of funds, with emphasis on the accurate investment of funds and the construction of financial service infrastructure, the means of investment, as well as the level and volume of funds, and have achieved remarkable results.

1.1 Controlling the target of capital investment, increasing the source of investment funds and implementing accurate investmentJingzhou Branch of the People’s Bank of China adopts the methods of guidance, supervision, evaluation and assessment to strictly and accurately control the target of capital investment. It is mainly to guide banking and financial institutions to invest credit resources in key areas such as agriculture, rural areas, farmers and small and microenterprises by strengthening the evaluation of the orientation and implementation of credit policies. In order to increase the sources of funds for various banking and financial institutions, the People’s Bank of China has made necessary tilting adjustments to the relevant financial policies in accordance with the relevant regulations of the Central Bank and the actual situation. First, it has implemented a targeted reduction in the required reserve ratios for local corporate banks that have reached the standard of the credit issuance for rural small and microenterprises. Second, it implements the required reserve ratio of 1-2 percentage points lower than the normal standard of similar institutions for Agricultural and Commercial Bank and Agricultural Bank of China. It urges the banking and financial institutions to use the funds gathered in this way to increase the amount of money invested in the countryside.

In order to carry out rapid, efficient and accurate capital investment, the banking and financial institutions have carried out extensive and in- depth publicity and education and fine and down- to- earth investigation and research. On the basis of accurately grasping the capital demand in rural revitalization, it tries to make the purpose and significance, policy rules, product types, credit conditions and operating methods of finance serving rural revitalization deeply rooted in the hearts of the people, and stimulate the enthusiasm of all kinds of operators to accept financial credit services[1].

1.2 Strengthening the construction of financial service infrastructure, innovating the means and methods of capital investment and implementing easy and convenient servicesThe main purpose is to enhance the grid construction and promote inclusive financial services. In accordance with the standards of responsibility, archiving standardization, product diversification and fine service, Jingzhou Agricultural and Commercial Bank has built inclusive financial service workstations to promote self- service banks to connect to each town, transfer telephones to connect all villages, and mobile bank to be available to all households. By the end of June 2018, the bank had established a total of 1 185 financial services workstations, installed 1941 transfer machines and tools, and laid out more than 54 000 QR codes for payment. It has achieved full coverage of rural areas in the city, opened up the last kilometer of rural financial services, so that residents need not go out of the village for deposit and withdrawal, and can enjoy the convenient financial services of transferring money in the field.

Jingzhou Agricultural Bank has built self- service banks, wisdom banks, WeChat banks and village- level financial service contact points in villages and towns where there are no outlets. It also places transfer phones, POS and other electronic devices at the contact point, and also achieves the effect of convenient financial services.

1.3 Increasing the amount of investment significantlyIn the first half of 2018, the balance of agriculture- related loans from banking and financial institutions in the city reached 78.959 billion yuan, an increase of 11.5% over the same period last year, an increase of 6.552 billion yuan over the beginning of the year, accounting for 52.72% of all new loans. The agriculture- related loans issued by the Agricultural and Commercial Bank reached 28.8 billion yuan, ranking first in the city’s banks and becoming the vanguard of the revitalization of financial services in the countryside. Driven by the Agricultural and Commercial Bank, other banks have also made corresponding contributions in accordance with the functional requirements. For example, by the end of July 2019, Shishou City had invested 5.533 billion yuan in loans for the Agricultural and Commercial Bank. The balance of rural loans from the Hubei Bank of China was 2.42 billion yuan, 1.08 billion yuan from the Agricultural Development Bank and 1.86 billion yuan from the Agricultural Bank of China.

2 Significant effect of bank capital investment services

2.1 Promoting the expansion, upgrading and integrated development of the three rural industries

2.1.1Promoting the expansion and upgrading of agriculture. Jingzhou City is the core area of superior agricultural resources in Hubei Province, the comprehensive production base of national important agricultural products, and the rice yield ranks first in the province. The output of aquatic products has steadily ranked first in cities and prefectures in the country for 23 consecutive years, creating 111 demonstration farms for healthy aquaculture at or above the provincial level, and there are five major aquatic counties.

After the implementation of the rural revitalization strategy, various banking and financial institutions in Jingzhou adopted innovative credit products such as "shrimp and rice loan" to give financial support from different aspects. It has pushed rice production and aquaculture to a new level in Jingzhou. The area of continuous cropping of rice and shrimp, symbiosis of rice and fish, and co- breeding of rice and duck was expanded from 119 000 to 169 000 ha, and the planting area of regenerated rice was expanded to 74 000 ha, ranking first in the province. Among them, crayfish production reached 338 000 t, accounting for nearly one half of the province and nearly one third of the country. Jianli County is not only the largest county in grain production in China, but also the first county of crayfish in China and the characteristic county of ricefield eel in China. Honghu City is not only a major national grain production city, but also the first famous crab city in China. The average net income per hectare of rice, shrimp, fish and duck production is more than 60 000 yuan, nearly tripling from the original. It has become a good industry for rural revitalization, a good channel for ecological restoration, a good model for industrial poverty alleviation and a good way for farmers to get rich.

In addition, on the basis of in- depth investigation and research, the county and city banking and financial institutions are also making flexible and innovative use of a variety of financial service products to meet the personalized, multi- level, multi- structure capital needs of customers. It strives to create "one village, one product" and "one town, one industry", and has cultivated many typical agricultural industries with local characteristics. For example, the vineyard in Buhe Town, Gongan County, has become the largest grape producing area in the middle and lower reaches of the Yangtze River. The area of orange and pomelo in Songzi City has reached 15 000 ha and has been certified by the National Geographic Indications of Agricultural Products. There are also Jiangling County’s red rice, yellow peach, Taohuashan’s eggs, Jingjiang’s shelduck, Songzi City’s native chicken, Gongan County’s beef and other "Jingchu brands", which are going to the whole country, into the world.

2.1.2Promoting the expansion and upgrading of rural agricultural product processing industry. Jingzhou has a good foundation for agricultural product processing industry. In 2018, the output value of agricultural product processing reached 129.537 billion yuan, and the ratio of processing output value of agricultural products to total agricultural output value increased to 2.4∶1 from 0.9∶1 in 2010. The contribution rate of agricultural product processing industry to industrial growth reached 53.79%. The number of China’s well- known trademarks for the city’s agricultural product processing industry reached 13, accounting for 61.90% of the city’s total.

Among the 125 enterprises in Honghu City, 75 have established credit business cooperation with Honghu Agricultural and Commercial Bank. From 2017 to July 2019, a total of 1.289 billion yuan of credit funds were provided to 15 leading agricultural enterprises and more than 300 new rural operators, which effectively promoted the development and innovation of the enterprise and its linked subjects. Shishou Agricultural and Commercial Bank has established a long- term cooperative relationship with Hubei Fenglin Wine Brewing Co., Ltd. The company bought shares in the Agricultural and Commercial Bank, and borrowed loans to achieve their own development and growth, and at the same time, realized the cumulative settlement of 2.06 million yuan, reflecting the win- win effect of the company and the bank.

2.1.3Promoting the integrated development of the three industries. Tongling Village, Baling Mountain Town, Jingzhou District, with the support of a loan of 1 million yuan from the Agricultural and Commercial Bank of Jingzhou District in 2017, set up Tonglinggang vegetable leisure and tourism theme park. It implements a series of operations such as planting, selling, eating, drinking, travelling and entertainment, with a turnover of more than 20 000 yuan a day. In 2018, Agricultural and Commercial Bank increased its trust to 10 million yuan, helping its industry to expand and upgrade by leaps and bounds.

Shishou Hubei Liuhushan Ecological Science and Technology Co., Ltd. is a leading enterprise of modern agricultural industrialization and it integrates the primary, secondary and tertiary industries. The company grows 80 ha of improved tea, 66.7 ha of high- quality fruit, 66.7 ha of medicinal materials, 120 ha of economic forest and 33.3 ha of aquaculture. The tea it produces is marked with green food. Among them, Jinfengyujian Tea has won the "Hubei Famous Tea Gold Award" and the "Fourth International Famous Tea Gold Award". The company has also built four ecological parks around Liuhu Mountain, forming a tourism circle around the mountain, using the wild green forests of Liuhu Mountain, pleasant climate and spring- like mountain village characteristics of natural resources. Shishou Agricultural and Commercial Bank has provided it with 980 000 yuan of "agricultural loans" and 980 000 yuan of real estate mortgage loans. In 2018, an additional 1 million yuan of "Chunong loan" was provided to support the expansion, cultivation and marketing of tea. In addition, the Chunong Commercial Village Bank of Shishou City gave the company a forest right mortgage loan of 2 million yuan. Its credit line in the banking system reached 4.96 million yuan. This has effectively promoted its rapid and all- round development, and made the company play an important driving and supporting role in the overall rural economic development of Shishou City.

Under the driving of bank finance, Jingzhou City has also made great efforts to develop rural new business type, forming leisure tourism agricultural models such as characteristic agritainment, folk characteristic villages and leisure agriculture demonstration parks. Among them, there are 709 agritainment farms, 311 leisure farms, 72 agricultural sightseeing and picking gardens and 37 agricultural science and technology demonstration gardens, with the per capita net income of farmers reaching 21 748 yuan.

2.2 Promoting rural areas to lift themselves out of poverty and become rich to achieve new goalsAfter the rural revitalization strategy entered the implementation stage, the Jingzhou Branch of the People’s Bank of China actively played the role of the leading department of financial poverty alleviation. It made effective use of the financial precision poverty alleviation information system, the financial poverty alleviation loan statistical system and the financial precision poverty alleviation policy effect evaluation system. It urged and guided all banking and financial institutions to strengthen the innovation of financial products and services, and developed targeted poverty alleviation credit products, including poverty alleviation loans, agricultural loans, farming loans, reciprocal loans, and so on. It took the registered poor households as the main body of the loan, and adopts the model of "property alleviation office+ enterprises+banks+poor households" and "project+banks+poor households" to issue poverty alleviation small loans and precision industry poverty alleviation loans.

In 2018, the balance of county financial precision poverty alleviation loans in Jingzhou reached 3.974 billion yuan, an increase of 1.446 billion yuan over the beginning of the year, a growth rate of 57.23%, and 22.7 percentage points higher than the average level of the whole province. By the end of June 2018, 6 714 poverty alleviation loans had been issued, with an amount of 649 million yuan. Of these, 6 542 households were granted microcredit for poverty alleviation, with an amount of 471 million yuan, and 172 households were granted loans for industry poverty alleviation, with an amount of 178 million yuan. The poor households who have obtained loans adopt the mode of independent or joint operation, and develop sleeping and idle resources in the local areas or even on their doorstep for entrepreneurship and employment. They not only got rich in their own families, but also led more than 4 500 poor households to get rid of poverty and become rich.

2.3 Promoting the expansion and upgrading of the new main body of rural agricultureAfter entering the stage of rural revitalization, the number of new agricultural operators in Jingzhou has reached 45 000, ranking first in the province. Among them, there are 5 846 farmers’ cooperatives and 6 264 family farms. There are 317 leading enterprises of agricultural industrialization at or above the municipal level (6 at the national level and 97 at the provincial level, ranking first in the province). The rest are leading enterprises and major professionals in agricultural industrialization at the municipal and county levels. The network of new agricultural operators has driven more than 900 000 farmers, accounting for 85 percent of the total number of farmers.

Under the guidance, supervision, evaluation and encouragement of the central branch of Jingzhou City of the People’s Bank of China, the banks in Jingzhou City regard the new agricultural operators as important financial service objects. It develops and uses service products such as "new agricultural loans" and "floating mortgage loans for large farmers" to give financial support. By the end of 2018, the loan coverage rate and satisfaction rate of the city’s new agricultural operators had reached 96.2% and 97.6%, respectively. Among them, the loan coverage and satisfaction rate of leading agricultural enterprises and cooperatives have reached 100%. Loans from the agribusiness banking system alone to new agricultural operators reached 735 million yuan in the first half of 2018. Among them, Jingzhou Yindu Agricultural and Commercial Bank issued 348 loans, with the amount of 31.77 million yuan. Shishou Agricultural and Commercial Bank has provided loans to support 950 new agricultural operators, with an amount of 218 million yuan. This includes 16 family farms (3.4 million yuan), 62 professional cooperatives of all kinds (68.52 million yuan), 16 grain and oil processing enterprises (66.89 million yuan), and 856 households (79.44 million yuan).

The effective accumulation and all- round accurate investment of bank credit resources have stimulated the vitality of the new agricultural operators, promoted their sustained and stable development and the rapid improvement of their management level, and become a veritable new force and main force of rural revitalization. Wan Dafa, a professional farmer from Daxing Village, Huangxiekou Town, Jianli County, got 900 000 yuan loan support from Jianli County Agricultural and Commercial Bank, and innovate and establish 2 000 m2of ultra- high greenhouse shrimp culture model. It can be raised six times a year, and its income is three times that of traditional farming[2]. Bi Lixia, a "female grain queen" who specializes in grain growing in Jianli County, has been instructed and affirmed by Vice Premier Wang Yang for her typical experience in creatively implementing moderate scale operation of agriculture, and has been cordially received by General Secretary Xi Jinping.

2.4 Promoting the construction of new modern townships, towns and villagesJingzhou City vigorously promoted the revitalization of rural ecology, carried out the project of beautifying homes, and initially formed a new rural style of "Jingchu School" with distinctive characteristics. In the rural revitalization plan, Jingzhou City identified the construction of 134 municipal rural demonstration villages, of which 70 pilot villages at the provincial level. At the same time, it promotes a green production and life style, and achieves 100% full coverage, 72% of the villages in the city reach the standards of ecological villages and towns (including 4 at the national level and 271 at the provincial level). It further creates forest towns and forest cities in the whole region. The city has 3 forestry ecological demonstration counties, 10 forest towns, 411 green demonstration villages, 11 wetland parks above the provincial level (including 6 at the national level), with a total wetland area of 702 000 ha. 4.5 million trees were planted and 41 300 ha of afforestation were completed.

In the revitalization of modern ecological townships, towns and villages, Jingzhou banking and financial institutions implement highly targeted capital investment through in- depth and detailed investigation and research. In 2018, the Agricultural and Commercial Bank of Jingzhou District invested 150 million yuan to support the construction of green and fast projects such as Colorful Flower Ocean, Spring Garden and Plum Garden in Balingshan Town, with remarkable results. The Municipal Agricultural and Commercial Bank also chose Xinxing Village in Jieheshi Town, Songzi City, as a demonstration village for beautiful rural construction, issuing a loan of 3 million yuan for credit support, and will also increase credit to farmers and the whole village in the later stage.

3 Main problems existing in banking and financial services

3.1 The total supply of credit funds is insufficient, the innovation of credit products is weak and the degree of credit satisfaction is not highIn recent years, the agriculture- related loans of banks in the area have maintained growth, but there is still a large gap compared with the increasingly exuberant financing needs of rural revitalization. In the investigation, a number of banks reported that their superior banks controlled the scale of credit issuance on a monthly basis and implemented quota management. This does not fully meet the day- to- day demand for credit. Even the credit needs of agriculture, rural areas, farmers, small enterprises and microenterprises, which clearly need priority protection, cannot be fully met.

In addition, the diversity, hierarchy and regionality of rural financial demand determine the need for continuous innovation of rural financial products. However, the motivation and ability of banking and financial institutions to innovate and develop targeted credit products is insufficient, which is limited to introducing or imitating existing credit products and models. In addition, some rural operators are unable to obtain or only obtain a small amount of loans because of the insufficient value of the guarantee or mortgage. A large number of rural operators, especially family farms, professional large households are still facing a shortage of credit funds.

3.2 There is a lack of credit demand due to regional industrial characteristics and weak main body of the loanJingzhou City is a typical area with water network lake area as the main body in Hubei Province and even in the whole country. Agriculture takes rice planting and aquaculture as the main body, and the seasonality of production and management and capital demand is very obvious. In particular, the seasonality of continuous cropping of rice, shrimp, fish and duck is more prominent, and the loan term is relatively short. General funds can be used for four months to repay principal and interest. In addition, in recent years, the continuous cropping market of rice and shrimp is better, and credit funds are no longer needed for normal operation for more than 2 years. And there are not many large- scale construction projects of regional agricultural infrastructure, less construction of new projects, and insufficient sustainability of financial support.

Jingzhou agricultural product processing industry is developed, booming, but other related industries are in the economic downturn. Under the background of in- depth adjustment of industrial structure, the loss of enterprises has expanded, and the cost of production and operation has increased unabated. For example, due to the cancellation of lint collection and storage in the mainland, cotton processing enterprises in their jurisdiction have suffered losses and closed down one after another. The prices of agricultural products such as grain, oil and beans have declined, and sales have decreased, resulting in an increase in agricultural production costs, and operating pressure, and a weakening of the demand and ability to raise funds from banks.

3.3 There are great difficulties and risks in the implementation of credit for both legal persons of banks and borrowers in rural areasBank corporate customer loan process is generally featured by the rating before the credit granting, more rural operators are difficult to meet the credit standards. In terms of mortgage conversion, the mortgage rate for land and property is generally about 50%, while that for other assets such as machinery and equipment is even lower, with some non- general- purpose equipment at a mortgage rate of only 30%. There are many main bodies of planting and aquaculture in Jingzhou. However, in general, the scale is not large, and the investment in fixed assets is not much. This is not enough to provide the full amount of collateral needed for loans, restricting financing guarantees, resulting in the difficulty of obtaining loans from banking and financial institutions and the bottleneck of capital shortage. From the overall situation of the main body of rural loan, their production and management capacity is weak. After obtaining the loan, if the operation is not well managed, the market is not strong, the product transformation is not fast, coupled with the destruction of natural disasters, there may be operating losses, and they will lose the ability to repay the loan. This poses a risk to both banks and borrowers.

The overall credit environment in rural areas is not good, the lack of credit is serious, and the credit management system is not perfect. In particular, the incentive to keep promises is insufficient, and the cost of breaking promises is low. Once there is a bad situation in the production and operation of some enterprise legal persons, small and medium- sized business owners and peasant household heads, they will secretly sell off their inventory collateral, maliciously evade bank debts, and produce non- performing loans. For example, at present, the grain, cotton and oil processing industry has formed a total of 540 million yuan of non- performing loans, accounting for 51.7% of the loans in the grain, cotton and oil processing industry. As the non- performing loan ratio exceeds the warning line, some banks have suspended a number of loans for agricultural credit products.

The guarantee mechanism and risk mechanism are not perfect. The government, banks, guarantee companies and insurance companies have not established a close cooperative relationship. Local guarantee companies and insurance companies are cautious about intervening in agriculture- related loans. There are few cooperative relations between provincial agricultural guarantee companies and banking and financial institutions in their jurisdiction. The main body of regional business is lacking in strong guarantors, banking institutions increase agriculture- related loans without insurance support, so they lack confidence in capital loan.

4 Measures and suggestions on perfecting the financial service of banks

4.1 Accelerating the structural reform of the supply side of bank finance, improving and ensuring the supply of finance

In view of the large number of rural loan holders, there are long- term financing difficulties, and strong tradition of bank corporate credit rating and evaluation, it is necessary to do the following three aspects of work.

4.1.1Further opening up the channels of financial supply and increasing the number of effective financial supply. It is necessary to implement the differential supervision policy of resource tilt and flexibility for rural borrowers, establish an independent accounting mechanism and assessment mechanism, and appropriately reduce the threshold of entry. It is necessary to adopt refined and differentiated pricing, reasonably determine the level of interest rates, and appropriately improve the risk tolerance of agriculture- related loans, so that rural borrowers can obtain more and better loan opportunities[3].

4.1.2Establishing and improving the differentiated financial product system to further improve the quality of financial supply. According to the development characteristics of each link of the agricultural industry chain and the capital demand of the main body, it is necessary to establish a customer stratification system, design targeted financial products and provide differential services. First, it is necessary to promote land and other management rights pledge credit products. Second, for the leading enterprise- driven business model, we should adopt the credit mode of "company+cooperative+member" to provide combined loans of guarantee for members, pledge of order and pledge of warehouse receipt. Third, it is necessary to implement joint guaranteed loans and portfolio guaranteed loans to large professional households and cooperatives with large households and leaders as the core.

4.1.3Further simplifying the business processes of financial supply and improving the efficiency of financial supply. It is necessary to shorten the financing chain, use modern information technology means such as the Internet, cloud computing, big data, and artificial intelligence, innovate and integrate business channels, to improve the allocation efficiency and service level of financial supply. In this regard, the banking and financial institutions can refer to the practices of Yingdu Branch of Jingzhou Agricultural and Commercial Bank of China. It is necessary to simplify the loan process. The small poverty alleviation loan of less than 100 000 yuan should be authorized to each second- level branch to examine and approve on its own, requiring that under the premise of complete information, it must be dealt with within three days, if there is prevarication and procrastination, it would be held accountable.

4.2 Cultivating the blood making function, financing ability and repayment ability of rural loan holdersIndustrial revitalization is the basic and fundamental support of rural revitalization, and it is the source of the improvement of blood making function, financing ability and repayment ability of the main body of rural loan. Given that Jingzhou is a big agricultural city and grain production city, in the regional three- industry integration development, agriculture is not only a basic industry, but also a weak industry, so the banking and financial institutions should give key support. Jingzhou City proposed that we should achieve full coverage of green planting and green aquaculture in 2020, and the financial departments of banks should take the initiative to design and strive for investment projects, innovate financial products, and do a good job in promoting them. In addition, it is also necessary to provide timely and effective financial support for the development of innovative leisure and tourism agriculture, culture and entertainment agriculture and other emerging industries with high grade, high value and high income.

4.3 Multi- party cooperation to establish and improve the financial security system and improve the ability of loan risk management and controlThe main purpose is to establish and improve the cooperation mechanism in the four aspects of innovative government, banking, insurance and guarantee, and do the following work well.

4.3.1Developing comprehensive rural insurance business. It is necessary to establish and improve the insurance marketing mechanism and strengthen the supervision and management of insurance institutions. At the same time, it is necessary to increase the publicity of insurance knowledge, improve the coverage of the business of insurance institutions to rural borrowers, and reduce or avoid the risks of both sides of credit.

4.3.2Establishing and improving guarantee agencies and mechanisms. If conditions permit, it is necessary for public finance at all levels to contribute to the establishment of financing guarantee companies with independent legal person status and independent civil liability, which are not for the purpose of profit. It is necessary to enlarge the scale of guarantee credit to meet the financial needs of more rural operators. It is necessary to study the establishment of special funds for guarantees for agriculture, rural areas and farmers, or the establishment of guarantee and re- guarantee institutions should be jointly funded by local finance and leading enterprises, so as to effectively solve the problems of guarantee difficulties and risk sharing of agriculture- related loans.

4.3.3Improving risk compensation mechanism. It is necessary for the government to set up a risk compensation fund for the revitalization of rural industries, formulate policies such as loan discounts and tax concessions for rural operators, and constantly strengthen their basic strength. It is necessary to expand the scope of scale and give necessary compensation to banking institutions and farmers who have lost loans as a result of the disaster. For example, since 2015, Gongan County has allocated 10 million yuan a year from county- level financial funds to serve as a risk fund for poverty alleviation. The loan banks enlarge the risk fund by 7-10 times to provide loans to the poor households and the new operators who drive the poor households out of poverty. After the risk arises, the government and the banks bear the risk on a separate basis at 5∶5. The county has granted loans of 62.98 million yuan to 335 poor households and new operators, including 62.12 million yuan from Agricultural and Commercial Bank for 325 households and 860 000 yuan from Construction Bank for 10 households.

4.3.4Jointly improving the financial ecology and optimizing rural credit environment. On the one hand, it is necessary to take credit integrity and credit information knowledge as the important content of the construction of "rural civilization", strengthen education and publicity, improve the cognitive level of personal credit among farmers and small and micro enterprises, and strive to cultivate rural credit culture. On the other hand, we should vigorously carry out the evaluation activities of "credit township", "credit village", "credit household", "credit person" and "credit enterprise", and establish and perfect the credit files of all kinds of rural management subjects. It is necessary to implement the credit incentive policy of "giving priority to loans, preferential interest rates, and simplifying procedures" for operators who are honest and trustworthy and have no bad credit history. It is necessary to create a good credit environment, reduce the rate of non- performing loans, and reduce and eliminate bank credit risks.

4.4 Promoting the government to issue "special bonds for rural revitalization" and "special bonds for rural industrial integration", and broadening the channels of financial servicesIssuing special bonds for rural revitalization is one of the important ways to expand the sources of funds for rural revitalization. The Ministry of Agriculture and Rural Affairs proposed that we should promote the issuance of a number of special bonds for rural revitalization throughout the country.

On August 20, 2018, Sichuan Province issued the first rural revitalization bond in China, the Luxian Rural Revitalization Special Bond, on the Shanghai Stock Exchange. The total amount of the issue is 500 million yuan for a period of five years, 50% subscribed by China Merchants Bank Chengdu Branch and Luxian Agricultural and Commercial Bank at an annual interest rate of 3.75%. Jiangxi Province issued the first special bond for the integration and development of rural industries[4].

There is a competitive and cooperative relationship between the banks that issue these two types of bonds. On the one hand, banks should strive for development in the competition and strive for the contribution to the project. On the other hand, it is necessary to do a good job in three tasks. The first is to promote the intention of the government to issue bonds. The second is to help the government and financing units to analyze and demonstrate the issuance conditions (the local government debt ratio is not more than 80%; the income coverage rate of the financing unit itself is not less than 1.2 times; special funds must be earmarked). If the conditions are available, we should actively promote the implementation. Third, it is necessary to actively subscribe for the corresponding bonds, as is the case with Sichuan China Merchants Bank Chengdu Branch and Luxian Agricultural Merchants Bank.