Rural Financial System Problems And Countermeasures

The issue about agriculture, rural areas and peasantry is a difficult problem in the process of promoting economic development balance and building a harmonious society in China. In order to solve the above problem, we must build sound economic basis, which is inseparable from the support of financeial service, in the rurals areas. However, due to the particularity of economic development environment in rural areas, financial resources are gradually lossing and many financial institutions left rural areas, leaving that the need of rural financial service can not be effectively met by the rural finance supply system. China's government has repeatedly issued related documents to provide guidance for rural economic and financial development and reforms, but specificlly, there are some deficiencies in the implementation of those guidance in various regions. As a big agricultural province, Henan Province shows some special features in the situation of economic and financial development comparing with the national average level. Also, there are still many unreasonable factors need to be improved in its rural financial system, which can make a big difference to the local economic development.In this context, based on related theory at home and abroad, this paper studied the overall financial system status and found problems in the service of financial suppliers of rural areas in Henan Province through qualitative and quantitative analysis. By learning advanced experience in building rural financial supply syestem from foreign countries and other provinces in China, some reasonalbe policy recommendations are given and the following strategic framework for Henan Province is proposed:first, we need to improve the basic mechanisms of rural financial system construction, which consists of policy financial support, agricultural insurance system and rural financial environment, to protect the overall supply of rural financial service. Second, we should take effort to build a multi-level financial service system by introducing various types of financial institutions and improve the competitivemess of rural financial markets.Third, financial institutions should be actively guided to provide financial services and products that are tailor made for the demanders in rural areas.