The Study On New Rural Financial Institutions Development In EnShi

In China's rural areas, how to provide effective financial services to farmers and rural enterprises is still the challenges the government facing. But the constraints of funds have become one of the most important bottlenecks of China's rural economic development. At present, there are many problems in China's rural financial sector, from the macro-level, the service of formal financial institutions is difficult to reach the right place, and civil financial institutions disorderly developed without supervision; From the micro-level, poor financial ecological environmental leading to financial institutions difficultly developed, and long-term "hard loan" plagued the development of farmers and rural enterprises. All of these issue concentrated expresses a serious imbalance of supply and demand in the rural finance. Practice has proved that the original executive-led type of rural finance has hindered the development of rural economy; therefore, a market-led type promotes the rural financial system reform and development is the urgent need of reality.In the rural financial reform background of market-oriented, the development of rural financial institutions is an inevitable requirement of rural financial organizational system evolution, regional economic development, rising of small and medium enterprises in rural areas, meeting the needs of farmers'diversified financial services. The characteristics of new financial institutions is to solve the difficult loans of farmers and rural enterprises, it plays a unique and important role in promoting economic development in ethnic minority areas, and at the same time, it will also become one of the major breakthrough of relaxing controls of China's banking industry and the introduction of private capital to the banking industry.This paper first introduced the study of the status at home and abroad, and then describes the rural financial structure of Enshi, analyses the main supply of rural finance from formal and informal rural finance, knows the history changes and operating characteristics of the main supply of rural finance. Then separately analyses the supply side and the demand side of rural finance, and gets the conclusion the existing rural financial system has serious flaws resulting imbalance between supply and demand in rural areas. Through the depth theoretical analysis of rural financial shortcomings, to conduct that the high-risk agriculture, rural information asymmetry, incomplete contract and trust system is the nature of reasons that there are shortcomings in rural finance. On the basis of the theory and practice of the new financial institutions development, combines the regional economic characteristics of Enshi and proposes the specific programmes of construction of new financial institutions in Enshi. Finally, Since the new financial institutions is a positive and useful attempt which solve the problem of rural finance, it must face a series of problem in practice, the government should protect and support the development of new financial institutions from law, policy and monitoring.