Research On The Rural Finance Regional Difference In China

Finance as an engine of economic development, the core position and leading role are becoming more and more evident. The arrival of financial globalization, has brought opportunities and challenges to financial development in China In order to maintain the healthy development of economy and finance, we must deepen the financial system, optimize the financial structure, and promote rational allocation of resources to achieve regional financial and economic development consistency. As an important part of the financial system, rural finance show significant regional differences in our country. In developed areas, rural is on the development stage of urbanization, development of rural areas also tend to conversion, the demand for financial functions show diversified characteristics, however the rural in less developed areas is still in the original state, the main financial needs is deposits and loans.Through field research in Chicheng County, Hebei Province, concluded that the main body for the financial needs is rural farmers, mostly small loan lending, usage life, high non-formal financial status, loan amount and loan period are the major factor what affect the household borrowing. The demand funds of rural enterprises is more smaller, financial needs in a time characteristic, capital requirements are not met in large part, had to turn to private loans.Throughout the country, rural financial needs mainly is rural financial development needs in developed areas, farmers with high production loans and loan demand, while the more developed regions and less developed areas has more life loan and loan demand in turn decreasing. The major factors what impact China's rural financial needs are the level of economic development in rural areas, rural per capita net income and rural finance duality. Based on the empirical tests, we found that per capita output of primary industry and rural financial needs with a weak positive correlation, while the per capita net income in rural areas and rural demand for funds with significant positive correlation. From sub-regional perspective, the average 124.32637 in the developed areas, the average 111.337096 in the more developed regions, the average -135.663444 in less developed regions, indicating that rural per capita net income a greater impact on capital requirements in the developed areas.The level of development of rural finance measured by FIR shows that the level of financial development in rural areas has increased, but not with the level of economic development consistency. From the level of financial development in rural areas in developed countries there is a certain gap, there is a serious phenomenon of financial repression, and in different regions show different characteristics.