On China's Rural Financial Service System

The rural finance is a specific historical concept; it is a peculiar financial phenomenon of dual economy period in one country. The reform of rural financial system is not only an important part of the whole financial system reform, but also objective choice of extricating oneself from a predicament in the rural financial institution, especially being key point of fasting development of rural economy of our country, and building the well-off society in an all-round way.1.development and revolution of the rural financial system and existing problemAfter the foundation of our country, rural financial service system undergoes five developing stages: primary develop, staying develop, preliminary reform, deepening reform, new-round reform. Forming primarily rural financial service system of close cooperation that divides the work in policy finance, cooperative finance, and commercial finance. But for a long time, the reform of our country's rural financial service system has been lagging behind in the need of rural economy development. The existing problem of the rural financial system is very complicated and very serious, for instance, the finance is suppressed seriously; Financial service efficiency is low; Financial risks are being accumulated constantly; the operation is not legal .The origin of producing these questions lies in the deviation of our ideal of reform for a long time, such as the misplaces of the subject, lacks of the overall situation and reforms idea, ignoring perfecting of the micro operating mechanism, cutting apart of reform in urban and rural areas etc and backwardness of the rural economy developments, and government's " omission " and " unsheltered " on function .2.the foreign rural financial development and experience that we can draw lessons fromThe rural finance is the peculiar financial phenomenon that a country is in dual economy period. Various countries have met this question more or less in the course of economic transition. Through the analysis of development of service system of the rural finance of some countries and regions, we can be enlightened as following: Cooperative finance, policy finance and commercial finance are organic componentsthat the rural financial service system indispensable; the cooperative financial institution is a main subject of the rural financial system, it is the key point which keeps the strong vitality of the cooperative finance to unite at many levels; The government's support is an important insurance that the rural financial system can be developed and perfected rapidly; market mechanism is playing a leading role in the course of perfection of various countries' rural finance service system; Sound micro operating mechanism and rural financial environment that is optimizing constantly are the strong guarantee of sound development of the rural financial system.3. the goal and direction of perfecting our country's rural financial systemThe final goal of our country's rural financial service system development is to dispel the financial phenomenon at this specific stage of economic development of " rural finance " completely, forming nationwide unified financial service system, realizing of interaction of the whole of resources in urban and rural areas. At the present stage, we should combine the final goal of rural financial development and new situation of development of rural economy in our country, and combine present perfect with long-term development of rural financial service system together, through the reform from bottom to top and service from top to bottom, to promote the improvement of the market-based level of rural finance of our country and reasonable flow of resources in urban and rural areas, and to construct the rural financial service system of a pluralism ,Micro operating mechanism perfecting and normal development.4. basic ideal of perfect our country's rural financial systemThe development of policy finance shall introduction competition mechanism as possible, to improve the operational efficiency of policy finance. As a result, we must define the business scope of policy finance, widen the policy finance capital source channel and type of operation of the innovative business and the change of operating mechanism of Agricultural Development Bank. Continuing to deepen the financial reform of cooperation of our country, fully arousing the inherent motive force of the rural financial activity subject, realizing the combination of reform from bottom to topwith policy guide and support from top to bottom and the combination of reform of existing agricultural cooperative association with cultivation of new agricultural cooperative association together, to promote the development of cooperative undertaking of our country. It is an objective demand for raising the market-based degree of the rural finance to perfect the financial system of the commerciality, for this reason, we must deepen the reform of the state-run commercial bank, establishing the system of normal organizational management and high-efficient decision system; Reducing the transaction costs of the rural financial market through many kinds of measures, using the mechanism of interests to lead the commercial finance to serve the rural financial market; Set up the rural commercial bank.