The Analysis On The Rural Civil Financial Markets In Northeast China

Finance is the core of modern economy. With the deepening of reform and opening up and the sustainable development of market economy, the demand in financial services of agriculture, rural areas and farmers are growing day by day. However, the backwardness of the rural financial reform and the lack of supply of rural finance become the bottleneck factors constraining rural economic development, and then become the stumbling block to the rural modernization process. "Three Rural"issue has gradually become the "agriculture, rural areas, farmers, agricultural credit" the "Four Rural" issue. Various forms of rural civil financial came into being and developing. In the northeastern region where the agriculture economy is in the dominant position, rural finance plays an irreplaceable role to rural economic development. Comparing with the formal financial, civil finance in rural areas has a more clearly comparative advantage. Its breadth, flexibility and convenience features make it deep into the all aspects of rural economy activity, and become an important channel for rural financing. The essential part of this article analyses the behavioral characteristics of supply-demand participants and the certain features of interest rate, which is on the basis of study in the demand-supply mechanism and interest rate mechanism for the civil financial markets in northeast rural area. And use the United States,Germany, France and other developed countries' way in dealing with civil financial for reference . This paper analyzes the appropriate civil financial institutions' type according with the development of northeast rural area, and gets relevant policy recommendations for the standardization of northeast civil financial markets and the establishment of civil financial system.The Main structure of this article is as followed:Chapter I is an introduction, which described the problems of civil finance, it was an overview and classification of relevant literature and research.Chapter II is the theoretical basis of analyzing civil financial markets. It introduced the theory of civil financial deepening and financial repression, and analyzed the advantages of civil financial in aspects of access to convenient, flexible interest rates, freedom, and a lower default risk.Chapter III analyses the supply and demand mechanism of northeast civil financial. By analyzing the main characteristics of the main demand and supply behaviors, we found a problem of increasing demand and limited supply capacity which was in northeast civil lending market.Chapter IV analyses the interest rate mechanism in northeast civil finance. In this paper, by analyzing the supply and demand of funds, capital allocation efficiency, information factors and the relationship between lenders we explained the four aspects of the determination of civil financial interest rate, according to the economic characteristics of the Northeast we investigated the reasons for the existence of a variety of interest rates. Researches have shown that the rural areas in northeast had been a tendency towards interest-bearing, which were friendly low interest rate loans. Northeast higher operational risks in civil areas, the structure of a single income of the farmers, scattered civil economic activities and unsound civil enterprise management systems were the main reason for high interest rates.Chapter V cited the successful experiences which we can learn from the United States,Germany, France and other developed countries in the establishment of cooperation in the financial system. We can find a number of inspirations to promote civil financial development in our country.①Arranging the civil finance into appropriate level.②Regulating the development of civil financial organizations by legislative norms.③Setting down a clear regulatory system for civil financial organizations.④Establishing reasonable civil financial supervisory system.⑤Ascertaining the property rights of rural civil financial system.⑥Ascertaining the management rights of rural civil financial system.Chapter VI is the policy recommendations. Through the analysis of the above-mentioned various chapters,and combined the actual situation of northeastern rural areas and the inspiration of developed countries and regions, this article thinks that the government should encourage the establishment of various civil financial organizations such as small and medium-sized private banks, cooperatives and rural micro-credit organizations in dealing with rural civil financial issues. At the same time the government should speed up to set up legislation to legalize civil finance, establish an effective regulatory regime, and actively promote market-oriented interest rates reform and improve the guarantee mechanism of civil finance.