Study On The Improvement Of China's Rural Financial System

The development of the rural economy provides a solid foundation for the stable development of our national economy. In order to guarantee the rapid and steady development of rural economy, a standard and sound financial system is required to provide funds. Now China has formed a rural financial system with the cooperative finance as the mainstay, the policy finance and the commercial finance playing an important role. Although rural financial market appears perfect and has a high coverage rate, in fact the supply of formal finance can hardly satisfy the financial demand that the rural economy development produces. The main representation is that the peasant household and the township enterprise can't finance smoothly.The market players in rural areas are seriously short of funds, and this has become the bottleneck of the rural economy development. Trace it to its cause, the rural financial system has defects: duality rural financial structure, the weakness of rural economic agent, incomplete finance contract and information asymmetry make the transaction cost of financial activity very high, and result in the commercial finance institutions to withdraw from the rural financial market in the course of pursuing profit; The service of the policy finance institution is relatively simple, and the coverage rate is low too; the rural credit cooperatives are reluctant to serve for rural market; the rural debts and the one-side funds-raising of postal saving have worsened the ecological environment of the rural finance.Setting up a perfect rural financial system will contribute to increase financial services in rural market, and give full scope to the important role of the rural financial system in stimulating rural economic growth. This article holds: The rural credit cooperatives has special advantage which meets the rural environment, so we must give full play to its major function that serve " three-dimensional rural issues" on the premise of perfecting ecological environment of the rural finance further, we should be devoted to promoting thereform and development of the rural credit cooperatives, we should promote the development of policy finance, adopt effective measures to advance the postal savings funds to reflux into countryside, and we should attract commercial finance to participate in rural financial market combining the introduction of the rural insurance.This paper is divided into seven chapters.Chapter One: General introduction. It includes the background of thesis, domestic and foreign scholar's study, research idea and research methods.Chapter Two: The second section analyses China's rural financial system. This chapter introduces the formal finance and informal finance and their respective function in the rural financial market.Chapter three introduces the defect of our country's rural financial system in terms of demand, and describes it from the eyes of peasant household, township enterprise and rural government respectively.Charter four analyses the rural financial defect in the approach of supply. It elaborately analyses the withdrawing of commercial finance, the restriction that policy finance faces, the inability of rural credit cooperatives, and the destruction of rural finance ecological environment.The defect of the rural financial system has been discussed theoretically in Chapter Five. The main reasons are the weakness of rural economy, information asymmetry and the shortage of system trust.Chapter six puts forward relevant countermeasures, mainly including: perfect the rural financial ecological environment, give full play to the role of the rural credit cooperatives as mainstay, and restructure the commercial finance and policy finance.Chapter seven puts forward the main conclusions of this paper.