A Study On China Rural Financial Repression And Financial System Reconstruction

In 2006, the No.1 document "SEVERAL SUGGESTIONS ON NEW RURAL CONSTRUCTION" was delivered by government. This was a sign that the policies would be more beneficial to farmers and was expected to promote rural development and raise farmer's earnings. And one of the most important factors that must be solved is financial repression in rural places. On the surface, there is an integrated rural financial system, including collaborative financial organization, commercial banks and policy banks.However, with the further reform of China's financial system recently, the Agriculture Bank of China has retreated from almost all the rural area because of the commercial reform, the Agriculture Development Bank of China has declined its business along with the reform of grain circulation system, and the Rural Credit Cooperative Bank is not real cooperative actually and hold the rural market at the same time. So the present rural financial system could not work very well, and it would be very important to rebuild it.Based on the study of the history of rural financial system, this paper analyzes the problem of rural financial system and its reasons, finds the numerical connection between financial development and farmer's earnings by econometrics, proposes the target and principles of rebuilding a new rural financial system, reconstructs the rural financial system and analyze the feasibility in the end. This paper consisted of 8 parts. The main content is described above.