| Finance is the core issue of economy development. Rural finance, as a dispensable part of modern finance, is crucial to the solution of"three-dimensional rural issues". It is a central concern in the rural economy development and plays a key role in the realization of rural modernization. At present, because of the restrains placed on rural economy by government, banking system, and external environment, the potential of rural finance is greatly inhibited. The rural finance system is unsound in supplying, unfair in rationing, unreliable in formal financing. Within the rural finance system, the mightiness of commercial finance is weakened; the capacity of policy finance is limited; cooperative finance, with its own constrains, is uneasy to be adapted to the needs of the rural development; private finance, with its systematic flaws, is unable to reach its full strength. All above show that we need a new perspective to examine current financial system, a new understanding of the future of rural finance to innovate rural financial system, to deepen finance revolution, to facilitate the healthy development of finance market. This work hopes to present some worthy results to motivate further research on rural finance and help gear our financial system to international standards, which has practical significance.Form the angle of demand and supply, this work employs empirical analysis, static and dynamic analysis, comparative analysis, micro analysis, and macro analysis to analyze the rural financial system. On the basis of a thorough clarification of the contents and features of rural financial system, this work reviews the history of our rural financial system, examines the current state of finance demand and supply in rural area, finds out the drawbacks, and puts forward my perception, that is the main reason for the unbalance of our rural financial system is the inhibition of finance supply. Addressing the essential causes, I advise the option of rural financial system innovation.This work is divided into four parts, specifically as following:The introduction states the meaning of this research, reviews former works, settles analyzing framework and analysis method, and presents the background of my dissertation.The first part describes the history of financial system and rural finance. At the beginning, it clarifies the contents, connotations, and functions of financial system, rural finance, the evolution of financial system, and the innovation of rural financial system. During the examination of the evolution of our rural financial system since the establishment China, by the account of our rural financial system and its evolution, it reflects on several important issues of the evolution, which includes the features of the evolution, the reason of unbalance, the costs and the efficiencies. Further, it sums up the features of different states in the evolution of rural financial system. It points out that this evolution is compatible to the revolution of financial system, and parallels the transformation from planned economy to socialist market economy. This evolution has following features: government driven, compulsive, gradual, from top to bottom. Our rural financial system is in an unbalance state, with salient drawbacks in many directions, and is trapped in a low efficiency pitfall. The second part is the analysis of our rural financial system. This system has two sides, which are demand and supply. The demand is composed of farmers, household enterprises, and small and medium-sized enterprises. According to the theory that demand shapes supply, this part starts its analysis from the demand. It analyzes the situation of rural loan needs, the rural borrowing behaviors, and logic behind these behaviors. Then, it analyzes the supply. In the light of the theories of New Institutional Economics, such as inductive and compulsive transformation, path dependency, and property right, it reports the institutional arrangements and inherent flaws of formal financial systems such as policy finance system, commercial finance system, and cooperative finance system. This part, along with the detailed features of our rural financial system in the first part, analyzes the causes of these flaws and points out unequivocally that the main reason of the unbalance of our rural financial system is the inhibition of supply. Because the formal financial sector can not fulfill its part, the potential borrowers have to turn to informal financial agencies. The growth of the informal financial system is spontaneous and gradual. As the formal sector cannot satisfy the needs, informal agencies, with its institutional advantages, play a significant role in the development of agriculture and rural areas. However, the informal financial activities lack formal contracts, lack supervisions, and aren't rooted in laws. It can bring troubles and negative effects to the progress of rural finance.The third part is on the foreign rural financial systems and their enlightenment to us. Developed countries and areas (such as USA, German, France and Japan) and developing countries and areas (such as India and Bangladesh) have different features in their commercial financial system, policy financial system, and cooperative financial system. They all develop their rural financial systems according to their national conditions. All kinds of financial institutions have clear duties, interacting with and completing one another. Government grants many supporting polices and favorable policies to help rural financial development and try to support rural financial system by perfecting laws. Commercial financial system, policy financial system, and cooperative financial system as well as agricultural insurance all facilitate the rural development. The successful model of countryside banking system of Bangladesh will provide valuable information.The fourth part is on the innovation of our rural financial system. Based on former parts, using foreign experiences, it proposes solutions to amend current flaws and a direction for our rural financial system development.To sums up,the restrains of finance in our rural finance stems from both demand and supply. According to our national conditions, the primary cause of the unbalance in rural finance system is supply restrains. Therefore, we need to deepen finance reform, eliminate financial restrains, and innovate financial regulation systematically and in all dimensions.Firstly, reform the system of rural financial system, reconstruct rural cooperative finance, innovate rural commercial and policy finance, regulate and lead the development of informal finance system. Secondly, innovate rural financial market system by constructing flexible competitive market regulation and building up rural insurance market. Thirdly, innovate rural household borrowing system. Because each family is the basic economic unit of rural financial demand, we should bring healthy elements to rural household borrowing system, enhance the financing efficiency, implement the management in large scale and in good organization, and improve the payback ability. Finally, on the clarification of rural financial eco-environment, stress on the constructing sound rural financial eco-environment by innovation. Innovation should starts from the following aspects: improving rural financial credit environment; endeavoring to create a policy environment for innovation of financial regulation; strengthening the supervision system of innovation. |
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