Go From Financial Repression To Financial Deepening

The agriculture, the countryside and the farmer question are the most urgent problems in our country. It is a major issue which relates the national economy development, the social progress, the modernization and the harmonious social construction. Finance becomes an important constituent in the modern economy finance which plays a role of the blood. Meanwhile it is the motive to the economic development healthily. Since the reform and open policy, the reform of our rural economic organization has provided the broad development space for the development of rural finance. But since long ago, rural finance reform has vicissitude under the government's compulsory system primarily, too pays great attention to the existence shape of the rural finance organization, neglected the rural economy multi-level to the financial resources and the multiplex demands, and caused the rural finance to form the serious financial suppression. This becomes the bottleneck which restricts the development of rural economy in our country. Therefore, eliminating the rural finance suppression and accelerating rural economy development has become an important issue which our country faces currently.According to the basic route of eliminating the rural finance suppression and realizing benignity development of the rural economy, based on the elementary theory, system survey and difficult position of rural finance, this article has discovered the reason that rural economy develops slowly, it is rural finance suppression. The main performance is as follows: there exists obviously dual- structure; the financial system malformed development; the money market for our country incomplete and so on. In the process of rural finance development, the government policy leads the rural finance system vicissitude, The regular financial organ commercialization reform contracts the rural finance service; The non-regular finance is on the malformed development hit in the supervising and managing authority; The peasant household finance demand cannot obtain the effective supplies. All these reasons lead to present situation of the rural finance suppression finally. The article had found the root of financial suppress which is financial duality by analysis. From demand and supplies angle about rural finance suppression , I proposed the thought to accelerate the deepens of finance which is the mix advancement pattern: the supplies following and the demand firstly, namely take financial demand as guidance ,we construct new financial system including Agriculture Bank of China, agricultural development bank, rural credit cooperative of China, postal savings organization; which will guide folk finance healthy development; Perfect and optimize the rural finance market; Accelerate scientific style of government supporting agriculture; Stimulate the reasonable finance demands of peasant household. This article consists of four parts: The first part is introductory remarks which have confessed the background of the research, expounded the studies goal, significance, research technique and basic mentality of the article. The second part elaborated the rural finance theory and its development difficult position, In detail elaborated the rural finance important status, the characteristic, the financial organ constitution and difficulty meted in the current financial organ development .The third part obtains from the realistic situation of China rural finance, pointed out the serious rural finance suppression in China, which has restricted the rural economy development. Through analysis the financial suppression theory's connotation and general performance which is the theoretical basement of the article, Unifies the reality our country rural finance to inquire about "the financial duality" is the root of our country finance suppression. The last part pointed out that, the financial deepening is the way choice to eliminate the rural finance suppression. Through the theoretical analysis of the financial deepening adds actual pattern choice on conforms to our country countryside, we found the way to eliminate our country rural finance suppression and realize the development of the rural economy finally.