A Study Of The Construction Of New Rural Financial Service System In China

Rural finance is an improtant part of the national macro-financial system and the sound rural financial service system would play a crucial role in the rural economy and social development. In fact, after the analysis of the relevancy of rurul financial support and economic growth and the current state of rural financial service system, many problems were found: the unbalance of regional development, the low level of marketization, the low control capability of risks and the lack of funds. All of these problems constrain the positive need of rural finance and the rural and social development in our country. Therefore, to establish a reasonable, ordered rural financial service system benefiting the sustainable development of rural economy would be extremely necessary in the rural development and society.Based on the theories of economics and finance, taking as the start the balance of supply and need in rural finance, this thesis firstly made a careful analysis of the relevancy between financial support and economic development from the point of view of rural financial support. Then a careful analysis of the traits and behaviour of main bodies of supply and need in rural financial service system was made. In the meantime, the shortcomings of our rural financial service system and their underlying reasons were analysed in detail. Learning from the experience of the developed countries,this thesis drew a conclusion. The principles, aims, paths and contents for the construction of new rural service system were pointed out, including the reform and innovation of normal financial institutions and the construction and perfection of abnormal financial institutions. The strategies for the perfection of rural financial service system were the followings. The construction of rural financial system is supposed to be oriented for"issues of agriculture, farmer and rural area"and implement the principle of policy stimulus and marketized management; through the further reform of policy financial institutions and standardization of nongovernmental finance, the function of normal and abnormal rural financial institutions wound be complemented and in harmony; both the policy of agriculture and rural finance and the development of rural insurance should be strengthened and the rural insurance and loan system should be set up; by perfecting the construction of legal system, the financial products should be innovated, service fields and ways broadened. Eventually, the new sustainable diversified rural financial service system would be established in which different kinds of financial institutions are in existence, interdepending, complementary and competing, satisfying the financial needs of rural economy.