Study On Innovation Of Rural Finance Organization System In China

Resolving the problems concerning with peasant, agriculture & rural, is the key point and difficulty of administration in Chinese government. The core of the matter lies in promoting farmer's income. Whereas the approach is to cultivate and perfect the rural production factors, force the diversion of rural labor, maintain the stabilization and continuance development of agriculture. All of these depend on the support of rural finance directly or indirectly. In another words, the development of rural finance relates the resolution of problems concerning with agriculture, countryside and farmers.However, rural finance development exists serious problems, such as the difficulty of providing a loan to farmers, or rural to corporations in towns and villages, especially to small and medium enterprises in country. Therefore, the reformation on supply bottlenecks of rural finance becomes imminent, in the purpose of promoting the development of rural economy. One of the research angles is on innovation research of rural finance organizational system.The collective purposes of this article are to find the disfigurements in the organizational system of rural finance, through the reviews in structure and function of it, also by the methods of new Institutional Economics, we believe that the root of the disfigurements is the heavily shortage of supply under the control of our government in compelling variance of Chinese rural finance system, which bring on some serious effects , such as the disorder in property right of rural finance system, the absence of normal functions of rural finance system, the lose of rural fund, the lag of rural insurance, even the restraint of abnormal finance. On the base of these researches, we can give some thought on rural finance organizational system innovation researches and bring out some innovation suggestion both by the excellent experience of overseas and ourselves.In this dissertation, four standpoints have been expressed. Firstly, the property right innovation of normal rural finance should be based on the development levels and actual economy status of Chinese countries. Secondly, we have to perfect the organizational system of existence normal rural finance, consolidate the policy functions of banks, and re-sculpture the characters of rural credit organization. Thirdly, we should constitute and consummate the rural non-banking finance organizational system, establish the system of rural insurance, reform the post bank, set up the mechanism of capital circumfluence, found the direct finance framework of rural finance. In the end, should release the regulation of abnormal finance, cultivate and conform the abnormal rural finance organism, to assort with the development in finance organizational system.