Research On Rural Financial System In The Process Of Modernization

Our country's modernization should include industrialization,information,urbanization and agricultural modernization.How to implement the innovation and development of rural financial system in the process of modernization?The development of the rural financial system is closely related to farmers,rural financial institutions,governments,etc.The supply and demand on rural financial system faces obstacles,cultivation of the rural financial market main body,the efficiency of supporting agriculture about formal finance,the transformation of the rural informal financial organizations,the government's support of rural finance are studied in this paper,by using the theory of the rural financial development,the theory of new institutional economics,and so on.The first is that the agricultural modernization demand for rural financial system.The demand for rural financial system derived from the demand for rural financial.Agricultural modernization has a growing demand on rural finance.In the process of agricultural modernization,rural financial demand comes from two aspects.One is the individual requirements resulted in production and lifestyle of farmers,the other is the public demand caused by external conditions change of the agricultural modernization.Both individual financial demand and public financial needs are closely related with growth of urbanization in our country.According to the law of production relations adapting to productivity,the development of agricultural modernization need modem rural financial system to provide services for it.High investment is the important condition of agricultural modernization.Without enough financial support,the source of capital and intelligence could not flow to the relatively backward rural areas.Financial development,which urges capital formation,the allocation of resources and the transmission mechanism of technological innovation,plays a role in agricultural modernization,by saving effect,investment effect and the effect of the resource allocation(i.e.efficiency of investment).The second is the obstacles of financial supply and demand faced by the rural financial system.The first obstacle is the constraints of rural financial supply.At the present,rural capital maiuly comes from farmers' self-raised funds and external capital injection.As providers of rural capital,traditional farmers mainly use the way of savings,but they have difficulty in saving more rest retained.Under the goal of market-oriented management,it is obviously inadequate that the existing financial system supplies capital for rural.The second obstacle is the inhibition of rural financial demand.At present stage,the rural economy in our country is a typical small-scale peasant economy and the overall demand of farmers is not high.Even if there are borrowing needs,they hope more to lend from the formal financial institutions.But actually,it is difficult to get a regular loan.Inhibition of credit demand leads to that the operating mode of peasant household production is i conservative.The power of promoting local enterprise and improving production is lacking.So it is always difficult to low cycle out of poverty traps.In order to better analyze the influence of the rural financial supply and demand of rural financial system,the farmers' borrowing behavior,which is the benefit main body of the development of the rural financial system,is used as the research object in the paper.In this paper,the paper considers various factors and empirically analyses by the mathematical model.The third is the analysis of main body in rural financial market-a new perspective of agricultural management main body.Correct understanding of agriculture and farmers,is a premise of probing into the cause,why agriculture develops slow and traditional farmers are weak,and a way out.For a long time,the decentralized management model caused farmers' disadvantage of market and organization.However,agriculture is not a natural weak industry,and the farmers are rational producers who seek to maximize their interests and adjust their behavior according to the price signal.On this basis,this paper concludes that agriculture and other industries are all equal industry under market mechanism,and can cultivate the market main body with competitive power.Traditional farmers may not become the real market competition main body,far from the requirements of developing modern agriculture.The new main body of agricultural management conforms to the development trend of modern agriculture and chooses the mode of agricultural operation,greatly improving the competitiveness of the agricultural industrial organization.As the innovation of agricultural management system and mechanism in our country,the main body has strong ability of market competition and will play a more and more important role in the modern agricultural planting and breeding,circulation of agricultural products,processing,etc.At the same time it shows strong ability of rural financial resources gathered in the operating activities and is not only the rural financial market in the middle of the power but also being able to do the important task of modern agricultural development.Experience of development at home and abroad suggests that new main body of agricultural management is beneficial to both the rural economic structure optimization and improvement of development level,at the same time it can create a good economic environment for rural financial development,strengthening the farmers' income and accelerating agricultural modernization.The fourth is the analysis of effectiveness about formal financial supporting agriculture.Although formal finance in rural areas in China has gradually formed multi-level and multi-channel rural financial system of mainly rural credit cooperatives,commercial bank branch,agricultural development bank,postal savings institutions,but at present stage,formal financial has not truly reflected the function of its supporting agriculture and rural economic development.From the angle of financial resource allocation function,whether the formal financial system of a country or region is perfect and sound,we can use the adaptability,efficiency and completeness standards to measure.The current situation of the rural financial system in China is far from three criteria of determining whether a financial system is perfect and sound.Why formal financial supporting agriculture is lack of effectiveness has apparently institutional root.Thus,in our country of economic transition,we should reconstitute and position the function of formal financial supporting agriculture.The main features such as information asymmetry,lack of collateral,lack of credit system are different between urban financial markets and rural credit market in China.With the speeding up of the agricultural modernization,our country's traditional farmers will gradually shift to new agricultural management main body.Therefore,this paper argues that only the advantages of both traditional society and modern science-technology are considered,can the reform of formal financial supporting agriculture explore models with both conforming to our rural reality and having the characteristics of modern information,expanding innovative ideas.The fifth is the analysis of the transformation of the rural informal financial organizations.Insufficient supply of formal finance provides a broad space for the development of rural informal finance.However,the existence of rural informal finance is a double-edged sword,which plays its advantages and can also produce certain negative effects.So,for the rural informal finance,we must not simply yes or no or even to ban it,and should give legal status to the informal financial organizations,led by the government around the "three-rural" financial service demand,and include them in the financial regulatory system.We should perfect the informal finance and give full play to its significant advantages to meet those need excluded by formal finance.Rural formal finance and informal finance have their own competitive advantages,which determining strong complementary relationships between them.For these,we can build transformational patterns of rural informal finance according to our reality,making it serve better for the development of rural economy.The sixth is the government's support of rural finance.Playing the decisive role of market in allocating resources,and better giving play to the role of the government,is understood deeply the relationship between government and market by our government in the process of economic and financial development,which is also to redefine the relationship at the new stage of development and reform of China's economic.In our country,the theory of the relation between government and the market has been applied to the study of various problems.So far,the development of rural financial market is not perfectly,the market itself alone is difficult to form the effective mechanism.Determining the role of the government in rural financial market,not only because of the phenomenon which rural financial market is a failure,but also being combined with the history of economic and financial development in our country,which may be the problems of government failure.In addition,the impact of the system culture and the particularity of the rural financial market should be also considered.At present stage,the market's decisive role in the allocation of resources is conducive to the transformation of government's function.And the decisive role is not all,nor does it mean that the market is universal.The decisive role plays in the field of micro,while the government's function should limit in the macroscopic field,which is positioned more clearly in perfecting and improving the system of market economy,developing the ecological environment of fair competition,regulating the market main body and the activity of the responsibility,so as to do a good job in "night watchman".