Rural Financial Regulation In China: Transformation, Effect And Improvment

The main object of financial regulation is to promote development and avoid crisis, and the object of avoid crisis is to guarantee economic surrounding stability. By this means financial regulation's final objection is to promote development. Many scholars have done a lot of research on this problem, and to form a series of typical financial regulatory theory. Gorton, Winton and Kane research on the implementation of bank regulation in some country. Based on Barth, Caprio and Levine's research; Li Tao, Shen Kun-rong and LI li used the same database to fish out optimal bank regulatory regime; and to use the result to practice in our country.But in present outcome the research on rural financial regulatory measures rarely. To some developed country, estanciero is simple business owner, rural and city economic as a whole system, so research on rural regulation unessential. The financial system in our country is different to other country, existing normal fiance and abnormal fiance. Therefore we must research on the rural financial regulation.This topic hopes to evaluate on financial regulatory measures in different rural economic surrounding to find a suitable financial regulatory intensity in rural area. In order to reflect the actual situation, we choose the index including interest control, rural financial branch number, regulation to abnormal financial institutions, and regulation to rural credit cooperation. After that we use the developing index as variable to analyze the influence of every regulatory measure to rural economics. In the end, we propose some policy suggestion to our country.