Research On NingXia Rural Informal Loans And The Reform Of Rural Financial System

The whole nation including the government has recently paid close attention to "rural demography, rural development and rural economy". The best solution to these issues is providing sufficient financial support that is the smooth operation of rural finance. But currently, rural finance has become the "bottle-neck" problem that prevents the solution of "three agricultural issues". Many scholars are attaching much importance to the problem of breaking the "bottle-neck" restrains.In terms of the reformation of rural finance, adopting one reform model cannot meet all situations because different provinces need different reform patterns. Therefore on the basis of practical situation of NingXia, this paper explores a way fit for NingXia rural circumstances from the perspective of rural informal loans.Starting from the definition of rural finance, this paper elaborates the rural financial system and its functions and indicates that the important feature of the system is "duality of finance" that is the coexistance of formal and informal finance in rural areas. The author uses the theory of institutional economics to explore the rationality of the coexistance. Furthennore, this paper, based on the empirical study on NingXia rural regions, makes a comprehensive analysis on formal and informal finance from these aspects such as present situation, problems, causes and influences with the data obtained from the investigation. And then this paper offers valuable suggestions to the reform of NingXia rural financial systems. Finally, this paper points out that "three agricultural issues" are so complicated that the solutions depend on the supports from other fields such as the land reform, the household register reform, etc. In this way, more direct and powerful policies could be adopted to strengthen and protect the agriculture and increase peasants' income.