Study On The Path Dependency And Reform's Mentality Of China's Rural Financial Reforms

Since the reform and opening up, China has made great achievement in agriculture and the development of rural economy and the ties between agriculture and countryside and national economy are becoming closer and closer. There are many factors which influence the development of agriculture, countryside and farmers. One important reason is that the current arrangements for the rural financial system can not meet financial needs of the main part in the rural economy. This means that the current arrangement of rural financial system in China restrains the deepening and development of the rural finance and limits financial needs of the main part in the rural economy. Therefore, it is necessary to deepen and develop the financial reform in rural areas. Only in this way, the issues concerning agriculture, countryside and farmers which is increasingly prominent can be effectively solved.In recent years, with the adjustment of the strategy of the state-owned commercial banks, the transformation of the function of the Agricultural Development Bank and the deepening of reform of rural credit cooperatives, the overall function of rural financial system has been weakened and the needs of the development of agriculture and rural economy can not be suited. The reform of rural financial system in China has been long affected by inertia of the reform in other systems and the rural financial system has long been an appendage of the rural economic system, leading to the long-term absence of the main part in rural finance. Target at the eminent problems in rural financial system and use path-depending analytical theory in the process of changing of the rural financial system to find out the current defects in the rural financial system. Seen from the level of plutonomy, China's rural financial system has dual defects in the structure and function. Functionality defects are mainly reflected in four aspects -the lack of perfect function, of rural capital accumulation function, of the capacity for sustainable development, and of the spread and transfer mechanisms for the risks. On basis of this, the reasons for the path-depending which arises in the process of changing of China's rural financial system should be reoriented and readjusted in the areas such as the policy finance, commercial finance, rural credit cooperatives and so on to establish a rational and effective operational mechanism , strengthen the overall function of rural financial system , build a " double-level four-dimension " rural financial system, innovatively think about rural financial system , discuss the major problems to be solved in China's reform of the financial system and rationalize reasons for the adherence to the design of rural financial system and in this way, the combined efforts for supporting of agriculture and rural economic development will come into being..