The Structure And Route Selection Of Chinese Rural Financial Development

Rural finance is the core of the rural economy.Perfecting the rational rural financial market system is the basic guarantee for ensuring the stable development and sustainable growth of the rural economy.It is an important foundation for the country's overall economic development,industrial restructuring,and economic strategy formulation.How to build a rural financial market system that suits China's national conditions,we must find a development model and path that match it.The rural financial development model refers to the corresponding arrangement and adjustment of the rural financial supply,demand side and national level in the form of institutions in different economic and social environments,different development conditions and backgrounds,according to different financial development methods.Credit funds to form a well-functioning rural financial market and a sound rural financial system will eventually form a relatively stable model for promoting the healthy development of the rural economy.In the continuous exploration and exploration,China's rural finance has been developed for 40 years and has achieved remarkable results.However,there are still many problems in the development of rural finance itself or in the process of reform.There are historical and practical reasons.How to solve these problems and find a development path that is in line with China's rural reality is an urgent task for rural financial reform.Through the investigation and analysis of China's current rural financial development,it is found that the current rural financial development model can no longer meet the needs of economic changes,not only solving the "three rural" problem worse,but instead hampering the process of rural modernization.The main manifestations are rural financial market system is still not sound enough,and the structural changes in rural financial demand have led to new imbalances in the structure of supply and demand.Financial repression has long existed and still exists.From the perspective of demand,the natural characteristics of farmers themselves make their lack of high-quality assets and collateral greatly reduce their availability of rural credit resources,the contradiction between the expansion of rural financial market capacity and the weak financial support system is still outstanding;From the perspective of supply,the supply of credit in rural financial markets is mainly driven by government policy guidance and administrative means,and there is also a lack of corresponding agricultural insurance systems and risk-sharing mechanisms for rural financial institutions in rural areas.Therefore,its ability to relieve the tension of rural borrowing funds is limited,and at the same time it has accumulated many problems in risk management;the complete risk prevention and control system has not been established.It is not up to standard in terms of popularity and quality.As an indispensable link in agricultural production,it should assume more important responsibilities.In order to clarify these issues,it is necessary to systematically sort out the course of China's rural financial reform.From a macro perspective,it can be roughly divided into three stages: the government-led model(1978-1996),the "trinity" model(1997-2004),and the commercialization-led model(2005-present).The key to distinguishing different models is the main means of meeting the supply structure and resource allocation of financial needs,namely how to balance the relationship between the government and the market.From a micro perspective,the rural financial development model can be divided into credit principal model,asset mortgage model and cooperative financial model.Focusing on the perspective of financial transactions,we will explore which financial models can best meet the needs of both the supply and demand sides of funds.The core function of finance is the accommodation of funds,to guide the capital flow to the area and maximize the value of it.The value should not only include economic value,but should also fully consider the social value,environmental value,etc.The definition of rural finance is also true,and because of the reality of our country,rural finance has also been given more important responsibility.Not only to accelerate the progress of agricultural development,rural progress and farmers get rich,but also at the same time paying attention to environmental protection and social justice in the development of economy,to make farmers have more dignified life.At present,farmers and credit funds are just like standing in the river on both sides of the shore.Financial is a bridge connecting the two of them and achieving the equilibrium of supply and demand of rural credit funds.It can be seen that China's rural financial market mechanism has not yet been established,the supply structure is not adapted to the changes in demand,and the market function is still not perfect.The underlying reasons for its emergence can be attributed to the unclear goal setting of rural financial model change,the lack of main motivation of rural financial model innovation,and the path deviation of rural financial model evolution.The most direct manifestation of these problems is that the imbalance of the supply and demand of rural financial credits has formed a de facto financial repression.Through empirical analysis of the factors affecting rural credit in China,it is found that there is a positive correlation between the consumption level of rural residents,the total agricultural production value,the net income of rural residents and rural credit balance.That is,the higher level of rural economic development,the higher net income of farmers,the higher consumption level of rural residents and the rural funds.The result is more serious the outflow phenomenon;The state financial support for agriculture and the fixed investment in rural areas have a significant positive effect on rural credit rationing,which has a certain inhibitory effect on credit outflow,and promotes the efficiency of rural credit rationing from the supply of funds.That is,the investment in the rural financial market has continuously strengthened the construction of the rural financial system and the improvement of the functions of the rural financial market,which has alleviated the rural credit suppression problem to some extent.The above conclusions provide an important reference for the choice of rural financial model in China.The intervention of government forces can promote the optimization of credit allocation and improve the rural financial market to a certain extent.However,relying solely on the government's mandatory administrative means fundamentally distorted the general law of financial market operation,weakened the role of market mechanism in the allocation of funds in rural areas,and aggravated the adjustment failure of rural credit markets.Therefore,combining the “visible hand” with the “invisible hand” and regulating the flow of rural funds with the spontaneous power of the market will be an inevitable choice for the rural financial development model.Stones from other hills may serve to polish the jade of this one.In order to better promote the development of rural finance in China,we can learn from the successful experience of foreign countries.The US Porter Country Bank model,the Bangladesh Grameen model and the rural banking model in India all have a place worth learning.In addition,emerging financial theories such as Internet finance,agricultural supply chain finance and new cooperative financial models have also provided new possibilities for the reform of China's rural financial system.Internet finance is inherently efficient and convenient,and the risks inherent in agricultural supply chain finance.The control role,the new cooperative financial model's unique information superiority and low supervision cost are the future development directions of China's rural financial industry.Admittedly,reform would not be achieved overnight.It will be a long and difficult process.The path choice of rural financial model should start from the following three aspects: first,a sound and complete rural financial system,second,optimization and upgrading of rural financial market functions,and third,improving the basic support of rural financial markets.Such as vigorously developing land for future income mortgage loans,financial subsidies for low-interest and subsidized agriculture-related loans,accelerating the construction of rural credit systems;Rural financial institutions should make full use of the existing policy advantages,actively expand the rural market based on their own advantages field.Rural branches of Commercial Bank should be built to adapt to the rural market operating system,Rural Credit Cooperatives should be committed to the establishment of commercial modern financial pattern,the future of the Village Bank is to reclaim the differentiated "Community Bank" road,the new Rural Cooperative Foundation will be a useful complement to the three of them;Insurance company ought to be of far sight,to see the great potential of agricultural insurance and the growth space,then seek steady progress under the support of the government of the agricultural insurance business.The rural mutual protection group,commercial insurance companies,agricultural reinsurance companies and the CIRC will jointly form Chinese three-dimensional agricultural insurance system,the power of the government and the market organically combine to form a joint force to promote the development of agricultural insurance.There is no doubt that the current rural financial system in our country has many problems and unreasonable aspects,but there is a possibility of progress because it is insufficient.On the basis of deepening the marketization of rural finance,the better policy could pave the way for the reform,the reform of rural financial institutions can be as the mainstay,the reform of agricultural insurance system is the escort.Then "agriculture,rural areas and farmers" problem will be solved.To achieving rural development,prosperity of agriculture and farmers affluence,after that building a fairly well-off society at an early date.