Research On The Evolution Logic And Path Innovation Of Rural Financial System In China From The Angel Of Balance Between Urban And Rural Development

Based on the background of balancing urban and rural development in China, this paper studied the history,used the evaluation method of performance, aimed to look for a way to China rural financial system in the future. Main content included:(1) after recalling the previous studies,this research tried to define the basic connotation of rural finance and rural financial system; (2) this paper combed, evaluated and rethought the evolution logic of Chinese rural financial system from the historical angle;(3)with the use of performance analysis method, this article researched the performance of the evolution of Chinese rural financial system at present;(4)this paper tried to look for the reason why the performance isn't good with the help of theory of institutional economics;(5)combining the current balance urban and rural development in China, this research designed the mechanism of the Chinese development of rural financial system.The conclusions of this paper:1.Rural financial system evolution is the change that been happened in rural financial system which standard the rural economic subject and his behavior. These changes included two aspects. On the one hand, this is relating to the rural financial institutions, just like the revocation or combination of the old rural financial institutions, the foundation of the new rural financial institutions, the change between the non-formal and the formal institutions. On the other hand, it's about the formulation and perfection of the rural financial system, these systems will do good to the normal operation of the rural financial system.2. Because of the government leading and financial institutions "insider" controlling, China's rural financial system evolution had showed serious path dependence features. The rural financial system path dependence mainly reflects in countries the main body of the dominant rural financial system changes, which led to the rural financial system vicissitude the mandatory, progressive and lagging. And at the same time, rural economic subject had not gain maximum benefits from the evolution of rural financial system. Except the country, local governments, the rural financial institutions "insider" strengthened the interest mechanism of rural financial system, path dependence continued.3.At present Chinese rural financial system is running low and the performance of the regional differences exists serious, which impacted on the balanced development of rural economy. This research defined the rural financial system operation performance for the formal financial institutions extend to the rural economy development of agricultural loans in these areas. The empirical results showed that the operation performance of Chinese rural financial system is low at present, the system evolution didn't optimize the operation performance. The district difference of the financial system performance, makes the Midwest faced more severe financial system evolution pattern, and China's rural economy development of comprehensive and balanced are conditioned. If the system operation performance improved, farmers and the rural enterprises'financing demand will get more satisfaction, rural economic development will also increase speed and quality of rural economic development.4.Based on the view of balance urban and rural development, it is very important to practice modern rural financial system, which play city financial rural financial impetus function and achieve coordinated development. Urban finance in China is being forward development in the aspect of financial scale, financial benefit to rapid growth and stimulating the economic growth. But the development of rural finance is hard. In the stage of balance urban and rural development, urban finance must drive and set the exemplary role for the rural. This will through the institution establishment, risk aversion, personnel training, and so on. The urban financial advantage will support the rural financial with the advantage of urban finance, finally realize the balance of the urban and the rural.The policy suggestions of this paper:1.Optimize the existing rural financial institutions function and accelerate the establishment of modern rural financial system. At present China's rural financial institutions covers policy, commercial and collaborative three types, which the role of comparative limited in their respective fields. Therefore, it should accelerate the establishment of a modern rural financial system, reasonable posit financial service range and service nature, improve various types of financial institutions function in the future development. Then each rural financial institution can offer different and multi-level financial service to meet the rural financial subject's diversified financing requirements.2.Through the system construction in non-formal finance to guide them for the playing a rational role. In China's rural areas, though government didn't accepted non-formal finance, it's also regular financial effectively complement which filled service vacancies of the formal financial and relieved the funds difficult in rural areas. At the same time, because of the limitations, the government adopted a policy of restrictions. The system construction of non-formal finance, on the one hand, it asked to perfect relevant laws and regulations required of non-formal finance. On the other hand it also required "fairness" of the competitive environment between the formal and the non-formal. The actively implementing regulatory policies will help the development of non-formal finance.3.Strengthen the transformation of government functions, reverse mandatory system supply situation. The government subject showed strong control in the evolution process of China's rural financial system. These control embodied in system evolution of prominence in government, exogenous and mandatory. The optimization of rural financial pattern unable didn't realize, limited financial resources can't realize effective distribution. Strengthening the transformation of government functions means the government function change should be based on the existing efforts, which will achieve real endogenous change, the category of non-independent, to realize the reasonable change of rural financial system.4.Establish and perfect the relevant security system, promote the sustainable development of rural financial system. The development of rural financial system needs support from the relevant security. The security system covers government subsidy mechanism, the legal system and regulations, agricultural insurance system, etc. Government subsidies for agricultural mechanism are to point to a government of theoretical and a weak sex characteristics. Government provides spread the preferential tax or direct subsidies, contributive support rural financial institutions. This asks public finance support. Legal system construction means by formulating and perfecting legal laws and regulations, compensating for existing laws and regulations to provide a good legal environment. Finally, through the reasonable insurance system, which can effectively sharing and reduce the probability of occurrence of a risk and losses, to promote the development of rural financial system is of great significance.