Based On Non-formal Financial Perspective Study Of Rural Financial Reform And Innovation

In China's rural economic development, capital has become an important constraint factor. The peasants who engage in non-agricultural industries, can't get an effective financial support, especially for doing small businesses and family enterprises at the beginning when encounter cash flow difficulties, or when the lack of access to financial support, which greatly restricted the development of rural economy. With the deepening of reform and opening up and development of free market economy, China's demand for financial services in rural areas is increasing. The services provided by formal financial institutions increasingly are unable to meet the demand for financial services caused by rural economic development. As a result, various forms of non-formal financial emerged, in the vast rural areas, non-formal finance has become common, a considerable portion of fund is achieved by the means of non-formal financial services. Therefore, to study China's rural financial reform and innovation issues are important and of far-reaching significance based on non-formal financial perspective.This paper is based on the financial supply inhibit the theory of financial markets and credit rationing theory of induced demand theory, by using theoretical and empirical analysis combining qualitative and quantitative analysis of integration methods, to study the rural financial reform and innovation. First, started from the definition of non-formal finance, the paper systematically study the characteristics of informal finance in rural areas and the major manifestations. In basis of a comprehensive analysis of the status quo, it discussed the reasons for China's rural non-formal financial activeness and problems. Then, the rural non-formal financial reform and innovation in favorable conditions and constraints have been studied, and China's adopted rural non-formal financial policies and their effect are evaluated in this study. Finally, drawing on domestic and international financial reforms on rural non-formal development experience and innovation, a comparative analysis of the rural non-formal finance and informal finance for economic growth are given, increase the efficiency of the farmers discussed the financial reform of China's rural non-formal ways and InnovationIn this paper, based on the basis of research results by their predecessors, and the related existed problems in China's rural financial reform and innovation, this article explores from two innovative aspects:first, from the concept of innovation, institutional innovation, mechanism innovation, product innovation, service innovation by multi-angle study to comprehensively analyze and grasp of China's rural non-formal financial development of the pulse, intended to illustrate non-formal finance to rural economic development. The second aspect is the multi-level comparative analysis. Tentative analysis of China's rural non-formal financial existence and development of the reasons behind their existence is reasonable, and non-formal rural financial reform and innovation, the Government how it should be made to actively guide and rational utilization of theoretical analysis and policy recommendations. Because of my limited knowledge and lack of practical experience, the study for rural non-formal financial reform and innovation is not enough for in-depth analysis, which will further refine and perfect for future studies.