A Study Of The Development Of Rural Private Finance In China

Finance is the core of the modem economy. With the gradual improvement of the socialist market economy and the continuous deepening of reforms in rural economical system, in particular, under a new phase of development for building a well-off society in an all-round way and constructing a new socialist country quickly, rural finance is the key factor of the rural societal and economical developments. However, institutional reform of rural finance has not gained an obvious success. Rural financial supplies do not match rural financial demands. It has become an urgent affair that adjusts the thought of rural financial reform and development. Based on the summarizing of the study about the rural finance and the rural private finance, this paper puts forward a new concept of rural private finance, namely, the rural private finance is the financial form that serves farmers, rural corporations and etc by means of capitals and credits through the operation and control of un-governmental capitals in rural areas. This paper also points out that the rural financial system includes the rural formal private finance and the informal finance, and analyses the relation of the rural formal private finance and the informal finance, and discusses the characteristic and institutional superiority. Based on the summing-up of the rural private financial theory, the paper points out that the development of the rural private finance is inevitable, dissects the limitation of the current rural finance by analyzing the rural financial supply and the rural financial demand, and concludes that the rural private finance is the crux of solving the problem of the supply and demand. The paper reviews the actuality and the history of the rural private finance, and explains the objectivity of developing the rural private finance. We discuss the development of rural private finance about the market admittance, the financial regulatory and the market exit, and review the course of the rural credit cooperatives, and put forward the measure of developing the rural credit cooperatives, at last, and analyse the institutional superiority of the rural informal finance, and put forward the permit of developing of the rural informal finance by efficient controls. In general, we think that the development of rural private finance is the demand of the rural societal and economical development, the request of rural financial reforms and the need of perfecting the new rural financial system.