Study Of China's Rural Banks

The issues of "Agriculture, Countryside and Farmer" has always been a major and real problem affecting China's socialist modernization and the comprehensive building of well-off society as well as a key of the construction of New Socialist Countryside. The construction of New Socialist Countryside lies in the economic development while the problem of capital is the key to promote the economic development. In recent years, many theoretical and empirical analysis indicate that the existence of serious phenomenon of Financial Repression in China's rural financial development and the benign interaction between the financial development and the economy development has not been realized.In this paper, the market-oriented farmers in the developed areas with the higher market degree of China being used as the breakthrough point to try to draw the findings guiding in other regions. First of all, from the analysis of micro-economics, the foundation game model between the market-oriented farmers in the rural bank and foreign providers of funds has been established and the Econometric Test has been used in the important variables. Secondly, try to explore an optimal approach to the combination of supply and demand of the financial markets of banking sector in the rural areas. Finally, the focused and strong policy recommendations have been provide for the relevant main bodies to the financial innovation in rural areas.