Rural Financial Protection

It exists " dual credit allocation" in the countryside: the first is McKinnon's financial repress because of the governmental control, the second reason is rural finance institution's reasonable choice when the planned-economy turn to market-oriented economy result in the outflows of the capital from rural area. The capital of rural area is scarce increasingly. Agriculture is important in the development of economy. We must protect the financial development in village. The dissertation stand on the point that we should protect and sustain development of rural finance from the combination of theory and practice, and article get lessons from the financial protective practice way in abroad, joining together the rural financial circumstance in our country, we can protect the rural finance by the following way:The first is that we supply a full organization framework to ensure the rural finance supply.1, We can ensure the rural finance supply by adjust and enhance sustains by the institutional finance, the main way is supply rent opportunity for commercial bank, induce they supply finance for the "peasant, agricultural and countryside". 2, The reformation of the Rural Credit Cooperatives must guidedby serve for" farmers, agriculture and rural". 3, Establish the policy agriculture insurance.The second way is provided policy guarantee to the rural finance protection, accelerate the process of rural financial law, insure the rural financing institution free from unreasonable administration interferes, also supply law framework for monitor organization the rural financing institution. Decrease and dissolve the financial risk in rural.