China's Rural Financial Development Countermeasures Study

Long-term since China's economic binary structure issue has not been resolved. Its roots in rural economic development lags behind, and restrict the development of rural economy bottleneck is the rural financial service system development and perfection urgently. Although the 2004 ~ 2010 central "no.1 document" for seven years of rural economic and social development, but make guidance planning rural financial supply problem still didn't get effectively solved. The crux of the problem is that rural folk financial development problem to be cracked.China's rural financial development situation is rural credit capital deficiency, China's rural financial service system to be perfect and rural financial market competition mechanism is not sound. Agricultural loans accounted for financial institutions of all loan balances low proportion. Data showed that agricultural output the contribution to GDP has been in over 10 percent, and agricultural loans the proportion of total loan balances but always below 6%. Meanwhile, 2009 farmers from regular financial institutions get loans accounted for farmers borrowed funds proportion of less than 40 percent. This explains the rural financial credit capital supply shortage existing. But rural financial service networks is insufficient, some local even melts service blank. Lack of rural financial product innovation, service level is not high. All this is that rural financial service system to be perfect. The rural financial market competition mechanism imperfect performance: the rural financial services of the subject in a single, cannot form varied competitive situation; The agricultural loans accounted for rural credit cooperatives national agricultural loans proportion has been well above 77%; Meanwhile, the rural financial institutions products and guarantee mode are homogeneous, cannot competing effectively. The present situation of the development of rural finance hindered the development of China's rural economy and hindered the increase of peasants' income. The rural financial development is mainly caused by the problems: one is the development of rural productivity level and adapt to the financial institutions are not perfect and lack of multi-level financial services institutions, such as rural folk financial organization. This is with long by rural folk financial services organizations that have been marginalized. 2 it is the formal financial institution organization function and rural economic organization form cannot docking, whether policy Banks or commercial Banks, rural credit cooperatives or are all more or less to exist cannot play its role support agriculture, rural development, increasing the income of farmers. 3 it is rural financial market development space is very large, but lack of incentive mechanism, need government support and double strength and jointly promote the rural market development of financial service system.In view of the above situation, the Chinese rural financial development path is that rural folk finance. Because rural folk financial is adapted to the rural economic development process natural grow up, with endogenous. Rural folk financial can compensate for the formal financial deficiency, in order to better service to "three agriculture".Of course, the development of China's rural folk financial still need to strengthen the construction of system, adopt corresponding countermeasures. For example, in establishing the market environment of fair competition, including advancing interest rate marketization, reduce market access barriers; Improve and perfect the legal system environment; Moderate strict regulatory environment. Ensure that private finance maximize self-generating advantages to solve current rural finance.