The impact of population ageing on credit rationing in rural China

Based on the trend of ageing in rural populations, this study utilized the 2019 China Household Finance Survey data to theoretically and empirically analyze the rationing behavior of rural formal financial institutions in credit supply and demand. The study found that: (1) ageing of the rural population increases the risk of quantity rationing faced by farmers; (2) The results of the moderating effect show that pension insurance mitigates the impact of population ageing on farmers’ experience of quantity rationing; (3) Population ageing reduces the likelihood of farmers voluntarily giving up on applying for loans from formal financial institutions, a phenomenon mainly due to ageing weakening the effects of Transaction-cost rationing and risk rationing.The research outcomes provide theoretical guidance and decision-making support for enhancing the level of financial services in rural areas and meeting the capital needs of farmers in production and daily life.