Study On The Development Of Rural Commercial Finance In China

At present, the rural finance system is extremely imperfect and cannot meet the need of the situation of financial supporting agriculture and the new rural construction. At the end of 2006, China banking regulatory committee issued the policies of relaxing the banking access in countryside, which symbolized that the new round of institution change is initiated of which is centralized by the financial organization multiplication and the market open. The commercialization is the direction and the inevitable trend of the new round reform. Strengthening the research of rural commercial finance is the essential condition of implementing scientific development view, constructing socialism new countryside and realizing harmonious society goal. The related issues of rural commercial finance is analyzed in this paper which has important theory supplement sense as well as the practice guiding sense.This paper consists of eight sections. In the first section, it is introductory remarked on the study background and literature review. In the second section, it is stated the theory foundation which includes the finance deepening theory, the finance repression theory, the finance intermediary theory, the finance restraint theory and the corporate governance theory. In the third section, it is evaluated the development situation of rural commercial finance, and the rural commercial finance system is totally studied and practically analyzed. In the fourth section, it is theoretically investigated rural commercial finance from the views of existing condition, connotation and character, institutional environment. In the fifth section, it is expatiated the development mechanism of rural commercial finance which includes the contents of market orientation, corporate governance structure, scientific regulatory system and development path selection. In the sixth section, it is empirically studied the intrinsic relation between the rural commercial finance and the rural economy development through the econometric model. In the seventh section, it is analyzed by case. In the eighth section, the conclusion and policy suggestion is proposed.The research results shows that: 1) The rural commercial finance refers to the capital distribution and economic relation of commercial finance which is centralized by commercial bank and includes the insurance, the future, the stock and the trust in rural area; 2) The rural commercial bank must orient the market again. Among which, the agricultural bank and the postal savings bank should focus on the large and middle scale customers, and the informal finance intermediary should mainly pay attention to the service lack of formal finance; 3) The corporate governance structure of the rural credit cooperative, the rural commercial bank, the state-owned commercial bank, the postal saving bank and the rural informal intermediary, are different from each other and should establish the corporate governance structure and regulatory system of rural commercial bank according to the category; 4) There are many development ways of rural commercial bank, that is, reform the rural credit cooperative to the rural shareholding commercial bank, reorient the China agricultural bank's market to rural area, cultivate the rural informal intermediary to rural commercial bank, backflow the China postal saving bank's capital to rural area;5) The modern commercial finance develops slowly, and the financial suppression phenomenon still exists. So it is urgent to deepen the rural finance.The policy implications based on the above research results are: 1) Builds the supporting mechanism between policy-based finance and commerce-based finance, and promotes the formation of variety organization of rural commercial finance system; 2) Establishes the coordination mechanism of rural financial policy, indusrial policy and fiscal policy, so various types of policies support the development of rural commercial finance; 3) Speeds up the development of various forms of security agencies, so that provides conditions for the sustainable development of rural commercial finance; 4) Innovates the institution by deepening finance in the countryside, so that provides good institutional environment for the development of rural commercial finance .