Abstract:
The farm household’s willingness for banking cooperation, an expression of their potential need for the service, determines the efficiency of the rural cooperative banking system. An empirical sampling study was made about the northwestern farm household’s willingness for banking cooperation and its attributive elements with the investigative data from 1156 farm households by a model of binary logistic choice. The study finds that farm households in the area have a strong willing for banking cooperation, 50% of whom want to join in banking cooperation. The investigative data show that, among the four dimensions: individual characteristic, social reputation, exchange cost and satisfaction with the rural credit cooperative, the variables such as the age, network, history of repayment, distance from the bank, waiting time in the bank, and identification with the rural credit cooperative system of farm households show prominent positive effects. In order to construct a multilevel and popular guarantee system of farm household banking cooperation, the banking cooperative organization should be directed to introduce corresponding loan guarantee service to help enhance healthy and rapid development of rural cooperative banking organizations.
