China's Rural Financial System Reconstruction

In mortem society finance became the core of modern economy, and rural finance is the major component part of modem finance. In recent years, with the degree of significance of the agriculture and farmers and rural problems going up, as one of them, the rural finance problem becomes the focus of controversies among theoretical field.Firstly, this thesis arranges modem financial development theories and rural finance theories, introdues modern finance and economic development theories of Gurley,Shaw , Patrick and Goldsmith, reviews the theory on financial repression and financial deepening of McKinnon and Shaw, and the theory on financial restraint of Hellmann, Murdock and Stiglitz, as well as relevant theories on agriculture loan and rural financial market and incomplete competitive market, empirically analyzes financial demands of peasant household and the Township and village Enterprises taken as representative of rural economic principal part and financial supply of rural official organizations and unofficial organizations.Secondly, this Paper gives a brief historical change about rural finance of China from ancient times, modern times, till the contemporary era.Thirdly, this article comparatively analyzes rural financial system at home and abroad, thus finding malpractice of Chinese rural financial system, then, from institutional and functional angle approaches reconstruction of rural financial system of China, puts forward reform measures and reconstruction plan of Chinese rural financial system.Finally, this essay draws a conclusion, China should establish multilevel and vigorous rural financial system, reorganizes existing rural financial organizations to be worthy of the name of policy, cooperative and commercial finance, issues laws and regulations on folk finance, cooperative finance and agricultural insurance as soon as possible, standardizes and encourages rural folk finance to fully develop...