Analysis On The Path Of Perfecting Our Rural Financial System

As a specific historical concept, rural finance is a certain finance phenomenon when a country was in dual economic period. Being the most important capital element in rural economy development , rural finance is the key foundation of rural economy development , which takes very important position in rural economy and social development. As the service unit for economical development of agriculture and rural area, rural finance in China is the outcome of rural economy development. Grown with rural economy development, rural finance has been a powerful guard of agriculture, rural area and farmer's production & living. A perfection finance service system has great significance for increasing effective supply of rural fund and prompting economy development of agriculture and rural area. Since the reform and opening, the great function of rural finance on supporting rural economic development has been emphasized in eight No.1 documents of Central Committee of the Communist Party (CCCP). In recent years, commanding overall arrangements with scientific perspective of development, CCCP highly considered rural economy as foundation place within national economy. With strategic idea of new socialist countryside construction, CCCP brought forward that rural finance reform and innovation should be boosted rapidly in'several opinions about CCCP & State Council's pushing forward the construction of new socialist countryside'on Feb. 21st, 2006.Nevertheless, under the overview of the evolvement and present status of China rural finance system, we know that the service provided by current rural finance system is far from meeting the demand of rural area to the finance service, and there are so many issues need to be completed in current finance service system: official rural finance system is seriously short of supply; the support to agriculture of policy finance is not enough; Agriculture Development Bank of China is unable to support rural economy and push the regulation of rural economical structure; Due to the principle of pursuing maximum benefits, the strategy shift of commercial finance restricts its service for rural finance; Rural cooperation finance is less than deserving ; Although non-official finance organization is a import part of China rural finance system, it is still restricted at present. Therefore, during the reform of rural finance system perfection, according to the main feature and objective demand of current economy and finance development, with the reform and development of rural finance system, taking the advantage of some non-official finance system effectively, making them normalization, rebuilding and perfecting a new rural finance system which complies with market economy principles, as well as be good for the development of rural economy. It is very significant for strengthening the foundation place of agriculture ; promoting rural economy development; raising farmer's earnings, resolving tri-agro issues and promoting the construction of new socialist countryside.