Study On The Rural Financial Institutions Of China

Along with the development of Chinese socialism market economy system, finance the core of modern economy plays a more and more important role in allocating resources, adjusting economic structure, promoting the quality and efficiency of the real economy. The central government can accommodate and control timely the macro-economy by monetary policy, guide indirectly the development of national economy through financial market, optimize the allocation of financial resources and promote the quality and efficiency of micro-economy through commercial bank, support effectively the implement of the state industrial policy through leveraging policy financial means, and meet the financial needs of farmers through rural financial cooperatives. In recent decades, Chinese speedup the reform and innovation of financial system under the direct leadership of the central government and formed a series of institutions concerning financial organizations, markets and supervision, which exerted a profound influence on the quality and efficiency of financial sector. But the so called "institutional crisis "problem is increasingly becoming serious, because of many factors such as the limitation of initial design of financial systems which bears the imprint of planned economy, the partialness of the later reform which did not touch the "hard core"of financial institutions, and the weakness of mechanical transplant from the developed economies. The reform of rural financial sector is a typical case. The state council enacted a scheme to accelerate the reform of financial system in 1993 and made the decision to reform the rural financial system in 1996. These two documents outlined the aims, tasks and emphasis of rural financial reform. Since then the rural finance sector has made a rapid progress in organizational restructure, mechanism innovation and effectively sustained the development of rural economy for many years. But the gathering of financial risks and inefficiency made people think what on earth was wrong with the rural finance. Further researches indicate that a scientific arrangement of financial institutions and the advanced financial culture are extremely important in promoting the efficiency of financial resources allocation, preventing and dissolving financial risks, and sustaining the development of rural economy. Without a scientific arrangement of institutions and a advanced culture, any rational behaviors will certainly be distorted, any technical amendment will be of no effect. So researches on the arrangement of institutions and culture of rural finance are of great importance not only for the sustaining development of rural economy and rural finance, but also for the academic developmentof relevant disciplines such as the Economics, the Finance, and the New Institutional Economics. This dissertation examined the status quo of the Rural Financial Institutions In China (RFIIC) and put forward a number of suggestions on the reconstruction of RFIIC, which should support the rural economy developing safely, effectively. The author firstly described the background of this dissertation and surveyed the recent literatures in the first chapter. In the later chapter several key conceptions such as institution, financial institutions, the New Institutional Economics and the Rural Institutional Economics were expounded. The author also retrospected the transformation of RFIIC, and examined the background, main causes, and characters of the transformation of RFIIC. Based on the equilibrium and cost-benefit analysis the author pointed out that the transformation of RFIIC experienced several obvious stages, which were consistent with reforms of economic and financial systems, the transformation of RFIIC was a gradual cause boosted from above to below, and the RFIIC at present is in a state of off-equilibrium. The fourth chapter analyzed the path and efficiency of the transformation of RFIIC and put forward some suggestions on the innovation of RFIIC. The followed chapter scrutinized the rural financial organizations in both developing and developed countries, investigated the problems and limitations of all kinds of rural financial organizations in china, and schemed the future reforms for theAgricultural Bank of China, the Agriculture Development Bank of China, the Rural Credit Cooperatives. The sixth chapter examined the rural financial market, and put forward the principia and emphases of the reform of rural financial market system. The later three chapters focused respectively on rural financial supervision system, rural financial culture and the correlative issues about the enterprise property rights, corporate governance, inside control system. The last chapter was a summary, which outlined the main viewpoints of this dissertation.