Research On The Competition And Risk Control In Rural Financial Markets

With the deepening of China's market Economic Restructuring, the rural economy and rural finance mutually interdependent relationship is more significant. Whether the process of agricultural modernization, or the construction of new socialist countryside, we need effective support from rural financial system. However, lack of rural finance market has long been the state of competition has led to the lagging rural economic development; the same time, the stagnation of the rural economy has further inhibited the development of rural finance, forming a vicious circle, but also contains huge potential financial risks. Therefore, an effective and competitive rural financial market is effective in identification, prevention and resolve of potential financial risk and also in promoting the formation of virtuous circle between the rural economy and the rural finance. Meanwhile, an effective and competitive rural financial market has a very important value to promote the building of new socialist countryside in both theoretical and practical aspects.This study will be oriented by the market economy goal of China's rural financial market reform. Based on theory of financial development, competitive strategy theory, theory of financial environment and theory of financial risk, we put forward a framework of competitive strategy and risk control in the rural financial market. The combine use of quantitative and qualitative research method make us research the of the status and problems of China's rural financial market development, competition in rural financial market and risk control issues in rural financial market competition deeply. And put forward a sustainable competition strategy for rural financial markets. At last part of this study, we proposed the specific measures by using of the rural financial market competitive strategy.Chapter One, Introduction. Definition of the problem, proposed study objectives and ideas, and introduced the research methods in this study, as well as the general path and framework structure of this study. ChapterⅡ, Theoretical Reference.This section is the review and summary of basic theory involved in this study. Based on reviewing the theory of financial development, competitive strategy theory, theory of financial environment and theory of financial risk, we put forward the conceptual framework of competitive strategy and risk control in rural financial markets. ChapterⅢ, grew up and problems analysis in rural China and of financial markets. The review and carding process in the growth of China's rural financial markets, and analysis of the problems, provide evidences for development the competitive strategy. ChapterⅣ, competition state analysis in rural of financial markets. Empirical study of the current competition in China's rural financial market. ChapterⅤ, risk control in the rural financial market competition process. Construction of the rural financial risk early warning indicator system, the use of rough set method to establish the index system the weight of the various early warning indicators and the establishment of rural financial risk warning model, then using the model to calculate the rural financial risk profile of provinces and cities. ChapterⅥ, competition for sustainable development of rural finance strategy. Competitive strategy proposed core objectives and principles, and competitive strategies for the specific implementation described. ChapterⅦ, the conclusions and policy recommendations.Through the study we found that China currently faces the problem, which is lack of effective competition in rural financial markets. And the Traditional rural financial institutions have a competition disadvantage with nonfarm Financial Institutions in rural financial market competition. The risk status of the rural financial market is not optimistic. China's rural financial market needs through appropriate competition and risk control strategies to achieve the sustainable development of rural financial markets. By actively cultivating the Competitors in rural financial market, rural financial markets through a Standard to enhance efficiency of the allocation of financial resources, and promote agricultural payments system innovation, improve financial performance, build a fair and orderly competition in rural financial measures such as the external environment to build a moderate competition, acts competitive market controlled so that it can effectively meet the financial needs of rural economic agents to promote the rural industrial structure adjustment and the optimal allocation of rural resources. Competitive strategy of the rural financial market, the rural financial risks should be effectively prevented and controlled, promoting rural economic and financial coordination and sustainable development, which makes the rural economy and financial development mutually reinforcing virtuous circle.