From The Demand Perspective On The Improvement Of The Rural Financial System

Rural finance is the most important mode of capital distribution in rural economic development. It plays a significant role in both promoting sound and rapid development of rural economy, promoting the optimization and upgrading of agricultural production, as well as increasing farmers' living standards.Because of the importance, along with the economic structure changes and developments in rural areas, China's rural financial system has experienced reform for several times. Although there were many reform measures, they both focused on the adjustment and improvement of ABC, ADBC and RCU, as well as the cleaning up of non-formal financial institutions. The previous reforms pay too much attention on the form and affiliation of rural financial system. Under the negligence of multiple levels and diverse needs of financial demands, rural financial system reform is taking a very typical "compulsory path", which is conflict with the bottom-up induced rural economic system reform. Thus, the results of the reform can hardly reflect the farmers' demands and cannot adapt with rural economic development. These ways of reform are difficult to improve the efficiency of rural finance system.To improve the rural financial system fundamentally, we have to "make development based on demand". Therefore, this article take perspectives of rural financial demands, analyses the influence factors of the demands, classify the rural financial demands subject by farmers and rural enterprises according to their income levels and operating conditions. Then, on the summary of rural financial reform history and current situation, this article make investigation in the imbalance between supply and demand of rural financial. "Stones from other hills, you can learn a good lesson," This article analyzed and studied in the rural financial system of United States, Germany, Japan, Brazil as well as India. After detail analysis in rural financial demands, on summary of previous reform history, by using foreign experiences for reference and combined with China's actual conditions, the article summed up several suggestions for the further improvement of rural financial system.Analyses based on demand, can overcome the shortcomings of past supply-oriented research problems. This way of study will make research findings more relevant, effective and operational.