Research On The Financial Support In The Development Of Rural Economy In China

In a modern market economy, finance is the core of the modern economy, and economic development must be accompanied by the support of financial resources. Our country is a big agricultural country with a broad area and a large number of population.Agriculture is the foundation of the national economy. The Chinese government has always given hign priority to agriculture,rural areas and farmers. After more than 30 years of reform and opening-up, Chinese rural areas have undertaken amazing changes. However, with the government maintains such compulsory control policies towards rural finance for a long time, a shrinkage appeared in the rural financial. The network of finance in rural areas become fewer and fewer, the financial services fund in rural areas are washed away, the financial services products in rural areas is absent,the function of financial services in rural areas is weakening. Therefore, the difficulties of rural financial have become a troublesome issue on agriculture development. Only by establishing a effective framework for a system of financial support, development of new rural can rests on a firm foundations. And only in this way, can promote China' s rural economy development, and achieve the harmonious development of the whole economy and society.The dissertation began from the demand and supply of credit fund in China's rural financial market, analyzed the present situations and problems existing in current financial development in rural areas of China. By analyzing related data, we are clearly aware that financial suppression phenomenon is extremely serious. Then on further analysis of dilemma of our rural areas financial development, and the reasons of why rural financial do not support rural economy. This paper believed that the major reasons can be summarized as follows:the rural financial system is not in perfect, the rural policy financial support is limited, the commercial reform of Agricultural Bank weaken its key role in the support of rural economic development, the reform of rural credit cooperatives still having many difficulties, so it difficult to fulfil their main force by giving support to rural economic development. The siphonage of the postal savings stations weaken financial resources to support economic development. The structure of financial assets is single, the development of informal financial institutions is nonstandard, and the poor economic efficiency of financial institutions,etc.Finally, the paper provides some corresponding countermeasures and suggestions. Above all, the rural financial system should be further improved, accelerate the innovation of rural financial instruments, establish the mechanism of fund return to the rural areas, and deepen external environment for the development of rural financial.At present, the rural financial is undergoing profound changes, and it represented an important historical turning point. Rural financial is facing a rare chance for development as well as tough challenges. We should establish and improve the rural financial services to support the "Agriculture, Countryside and Farmer", let farmers enjoy the results of the financial reform in the economic development, and provide inexhaustible financial resources for the construction of new rural. We should generate more rural financial resources to support economic development.