Indirect Financing Of Rural Legal System

The finance is the core of modern economy, under the situation of market economy, modern financing has been an essential factor of social reproduction. The financial exercise links produce,exchange,distribution and consumption. During the process of building the hannonious society and new rural area, the core problem that the peasants face is circulating necessary funds, there are three channels to circulate necessary funds: one is internal accumulating which is the same meaning of financing from the inside , two is loaning from the banks which is the same meaning of indirect financing, three is security funding which is the same meaning of direct financing. The agriculture is a weak industry and our country's security market is immature , as a result direct financing in the rural area is limited, rural financial organizations will play a more important role. In my opinion, rural indirect financing is an exercise that the rural economy organizations and individual peasants who have credit needs buy financial tools to obtain funds through the rural bank financial organizations and its branches.Considering our country's peasants are hard to obtain funds and rural financing organizations are hard to give out funds, the purpose of the article is to analyze the blemish and course of our country's rural indirect financing law institutions and advise how to perfect and innovate the whole rural indirect financing law institutions. The article consists of the following parts:The first part is the basic theory of rural indirect financing. First make the narrow and wide sense of financing. Point out three channels to finance and put forward that indirect financing is the main channel to obtain fund, make the sense of rural indirect financing on the foundation of the sense of financing and the providing bodies of rural indirect financing; then analyze the characters of rural indirect financing of our country from the view of peasants: the contradiction of supply and demanding is obvious,the credit environment is bad,the cost of financing is high. According to the opinion of institution economy, define the rural indirect financing law institution, find out the composition of our country's rural financing law institutions.The second part introduces the rural financing law institutions of the abroad model and its enlightenment to us. Introduce three models of the United States,Japan and India's rural financing law institutions, then we can draw lessons from the experience of them to economize the lawmaking costs and raise the quantity and the efficiency of the lawmaking.The third part is to analyze the blemish and course of our country's rural indirect financing law institutions. The current blemish mainly bodies on the narrow financing channels,the weakening support from the rural finance organizations,lacking of competing among financing supporting bodies,lacking of the corresponding assurance and insurance law institutions. The main course of the blemish is that the rural market's immature,too rigid financing supervision measures,the government's unwarranted intervention,supplying legal system lag with expanding economy.The forth part is perfecting our country's rural indirect financing law institutions. First argue the necessity and proper of our country's rural indirect financing law institutions from the angle of building harmonious society,reducing transaction cost and realizing the justice of the society. Then put forward the principles of perfecting our country's rural indirect financing law institutions are the principle of promoting the development of rural economy,the principle of connecting and forming a complete set,the principle of the stable and safe finance market. Last put forward concrete suggestions of perfecting our country's rural indirect financing law institutions: perfecting the law system of rural finance organizations,perfecting rural corporate finance constitute as the first step,standardizing the exercise of the nongovernmental financing and broadening channels to obtain funds,perfecting the corresponding assurance and insurance law institutions,mending the financing supervision of rural finance.