Research On Reconstructing Rural Financial System In China

Finance is the core of the modern economy. As an arrangement for the forming andeffective disposition of social capital, it is the key to the sustainable development of thenational economy to make the financial system reasonable and effective. The ruralfinancial system mobilizes, deposes, and manages the rural relative finance and is the coreof agricultural and rural development. Building a new socialism countryside requires toestablish a multi-level, broad and sustainable rural financial system, which meets the needof development in 'San-Nong' and guarantees sustainable increase of inputting capitaland effectively deposing financial resources. At present, there are serious flaws in thesystem's structure and operation. For example, organization mesh point, monotony inproducts and services, serious outflow of rural capital, hardness to gain loan in'San-Nong', which emphasizes that rural finance is the weakest link in entire financialsystem. This thesis will discuss how to strengthen input of rural credit -capital andenhance efficiency in disposing financial resources by rearranging and innovatingfinancial system. Therefore, we can strengthen remarkably financial function on servicingfor 'San-Nong', impel the construction of a new socialist countryside, and quicken thedevelopment of national economyBasing on the principles of Marx-economics, this paper absorbs reasonable factorsabout the characteristics of rural financial system from the western economics andfinancial'. With scientific method, the paper explores the evolutional courses of the reformand development of our rural financial institutions, and examines present situation of thedemand and supply in rural finance, so that it points out that the source ofnon-equilibrium among rural finance is the suppression in financial supply. According tothese, it offers the goal and principles for reconstructing rural finance system. It alsoelaborates internal logic and reality basis for financial support to the development of'San-Nong', especially discusses operation-principles and supporting-agriculture-effectamong commercial finance, policy finance and cooperation finance ,and development ofrural financial instructions, cultivating competitive financial market and innovation in financial product and service. Then, it points out that, to fully display function of financialsupport for agriculture, reconstructing rural financial system should strengthen anddevelop in reforming present rural financial institutions, innovating rural financialorganization and service, enhancing dynamics of policy-support and strengtheningsupervision in rural finance.