Western Rural Financial Development And Institutional Innovation Research

Finance is the core of the economy, so the rural financial development situation will affect and restrict the development of rural economy. The rural financial system condition is one of the core elements which affect the development of rural finance, so it is quite necessary to design suitable financial system for the development of western rural finance at the standpoint of system. This paper gives a view that the defeat of system is the main reason why the development of western rural finance is very backward, so we have to upgrade and innovate western rural finance system, and make it play a fundamental role in development of western rural economy and resource distribution of the new countryside construction. Base on system theories this article reveals that the rural financial development of west regions lag behind central and east regions through analyzing the present situation of western rural finance development, meanwhile, from the standpoint of system, analyzes mainly existing problems of western rural finance development, such as supply and demand, rural capital flows out of, reform of financial system in west China and so on. The analyses show that the system defeat is the main reason causes those problems, and then this paper provides the system framework of developing western rural finance by learning from successful rural financial system of typical countries.