Defects Of China's Rural Financial Service System And Perfect

The rural finance is a specific historical concept; it is a peculiar financial phenomenon of dual economy period in one country. The reform of rural financial system is not only an important part of the whole financial system reform, but also objective choice of extricating oneself from a predicament in the rural financial institution, especially being key point of fasting development of rural economy of our country, and building the well-off society in an all-round way.The demand of finance, which decides the financial effectiveness of the supply and the corresponding arrangements for the financial services system, is determined by the level of economic development. Follow this logic, the paper which researches the demand of rural finance, including the analysis of financial demands and characteristics of farmers and SMEs in the rural area of our country, focuses on the in-depth theoretical and practical analysis of the situation of the current supply of rural finance and the problem of it. As the role which is played by rural finance in the aspects of its Impacts on development of agriculture, rural development and farmers incomes can not be ignored, so this paper is emphasis on rural financial standards and development.The contradictions of the current rural financial demand and its supply, regardless of the whole level or the structural, are very conspicuous. The fundamental reason is that the current arrangements for the rural financial system without fully considering the characteristics of the demand of the rural finance, lack of the overall design about the rural financial system, which takes the rural financial demand of different levels into account; did not fully consider the basic reality that China's small-scale peasant economy is dominant and the reform of rural credit cooperatives will not be successful; did not develop small and medium-sized banks of rural communities which is established on the basis of the characteristics of the production and operation of the SME; and the functions of rural policy finance is unclear.In order to improve the rural financial service system, we should take some efforts on the aspects of the system of organization and the system of rural financial products, enhance the awareness of services for agricultural support, develop a series of financial products which are different, diverse and be able to meet the diversified demands of financial services. According to the requirements of the CBRC for small business loans, we had better extend the mechanism for credit loans and guaranteed loans to the area of SME credit steadily; encourage and support innovative activities about financial services to support agriculture and allow qualified financial institutions in the rural areas to carry out insurance, leasing, credit guarantees, counseling, Securities agents, operating capital, foreign exchange business and other non-banking business; improve the market level of financial services.