Financial Support For The Development Of Rural Financial Functions And Location Of The Path Selection

"Three Rural Issues" is the core of Chinese rural development. In order to fundamentally solve "three rural issues",to promote the agricultural development, to achieve prosperity in the countryside and to increase farmers' income, the support of rural finance is indispensable.A fully developed rural financial system can optimize the allocation of social resources between urban and rural areas, narrow down the socioeconomic disparities between urban and rural sectors, and protect the legitimate rights and interests of farmers. Whether the rural financial system could shoulder its due responsibilities or not, is the key to the agricultural modernization and the successful construction of the new countryside,as well as the implementation of domestic demand oriented economic development strategy. Therefore,the development of rural financial has become a key issue which is capable of affecting the core interests of China.The weakness of agriculture determines the characteristics of rural finance which is high risk and low return,at the same time,rural financial market exists asymmetric information,faulted risk compensation mechanism and monopoly of formal financial organizations,which shows that market failures exists in rural financial markets.As a result, rural finance cannot develop independently without support of concerned authorities of government. On the other hand,Chinese rural finance system is built according to the institution building models from top to bottom,so the reform of rural finance inevitably requires government support.Based on the analysis of rural financial ecological environment, in order to promote development of rural finance,there is no need for public finance authorities to pay attention to every area of rural finance,only to grasp the key points.Therefore, public finance authorities need to focus on the following five areas:rural financial ecological environment, rural economy, rural finance clients, the rural financial system, and rural financial risk-sharing system.Rural financial ecological environment is the base of financial system;public finance sector should focus on the development of rural credit environment and improvement of social credit culture,so as to provide high-quality soil for rural finance developmentAs to rural economic development, public finance sector would make efforts to increase subsidies,take measures to guide rural economy to upgrade industrial structure. At the same time,it is essential to develop modern agriculture to weaken the nature risk of agriculture.What's more,in order to reduce dependence on weather, it is dispensable to develop tertiary industries related to agriculture.About rural financial clients,measures below should be taken:first, perfecting rural area social security and increase transfer payments to farmers. Second, increasing education to farmers to train new farmers and increases their self-development capacity.Restructuring rural financial system:first, internal reform of the credit cooperatives is conducted to transform their operating mechanism and reduce business risk. Second,the function of China Agricultural Development Bank should be re-positioned so as to take on the responsibilities to support the development of agriculture.About postal savings,measures should be taken to guide rural credit funds back to rural areas and reduce the outflow of rural funds. At last, public finance sector should support development of new-type rural financial institutions to make up services gaps of the formal finance organization in rural area.Rural finance risk-sharing system should be perfected to disperse rural financial risks:On one hand,development of rural credit-assess system is needed to speed up to reduce adverse selection in lending.On the other hand,to reduce the ex-risk of the loan,measures should be taken to develop security companies,to innovate qualified mortgage and grantee bid,to develop loan and agricultural insurance further.