The Research On Reform Of Rural Financial System Based On Functional Paradigm

The principal task in building a well-off society in an all-round way includes such aspects as planning the urban and rural economic development, developing modern agriculture and rural economy, and increasing the income of farmers. Rural finance is the core of the economy and it leverages the rural economy as a lever. In spite of several reforms, there are still a lot of problems in our rural finance system. At present, it is urgent to perfect our rural finance system so as to provide satisfactory financial services for the main factors in agriculture.Previous practices give evidence that former reform measures conducted by institutional paradigm tended to neglect paying enough attention to the function of rural financial system, which would probably lead to deficiency and deviation from the oriental of the market. In fact, financial function is more stable than financial institute and functional preserve is more suitable for the research of trend of the economic system than institutional paradigm.In the paper, we induct the functional paradigm to provide a new angle to study the approach of rural financial system reform. From the aspects of credit market, insurance market, stock market and futures market, I propose the innovative paths to further improve the system based on existent financial demands and the orientation. At the same time, because the functional paradigm stressed the external environment influence for the financial system, so I give many development proposals to optimize the rural financial environment at the macro level. Generally, it is a new analytical framework that combines macro and micro proposals. The analysis mode and the conclusions of our study are hoped to be proved valuable to the rural financial reform in China.