China's Rural Financial Repression And Financial Deepening

Based on the theory of the deepening finance, after analyzing the progress of China rural finance deepening, this paper has researched the structure of rural finance system of China and its characteristics. The main problem is there is not a strong and effective financial system that serves for rural economy. Financial Repression blocks the development of the agriculture. This paper then draws some conclusions. In the following chapter this paper deeply analyzes the cause of financial repression. The short of supply and demand for financial services is the main reason. After analyzing FIR of China, we found that the development of rural financial system is slower than urban one. There are two models of finance deepening. One is demand-following, the other is supply-leading. At last chapter, this chapter give some advices for the next progress of China rural finance. We should build a new rural financial system, including Agricultural Bank of China, Agricultural Development Bank of China, Rural Credit Cooperatives and private finance organizations.This paper consists of five chapters, which are preface, the analyzing of rural financial system, the cause of financial repression, the progress of the deepening finance and conclusions.