Study On The Rural Development Problems In The Financial Market In Liaoning Province

The development of modern agricultural economy requires not only a lot of labor, land and other resources, but also need strong support of funding and effectively encouragement of the financial system, Therefore, whether it is the development of modern agriculture and promotion of food production and farmers' income, or the comprehensive reform of the rural economy, the function of rural financial markets must be paid fully attention. Statistics show that the costs of a new socialist countryside construction to be fully completed by 2020 in China's rural areas, are expected to need more than 4 trillion of funds, which depend on the health of rural financial markets. After three decades of reform and opening of Liaoning Province, the complete financial system of rural financial markets has been shaped ,including the core of rural credit cooperatives and the adminicular small loan companies, agricultural insurance companies, financial institutions to guarantee and it plays a crucial role in promoting the economic development of Liaoning agriculture. However, many county‐level financial institutions have withdrawal from rural markets under the guidance of maximizing their profits in recent years, for the backwardness of rural economic development, weak agriculture, higher risk investment, low return rate. Therefore, the rural financial markets become increasingly low level of support, many rural township enterprises and farmers in small economies almost impossible to get the funds needed for development in Liaoning Province. So, rapid economic development has been severely restricted in rural areas.Based on international research on rural finance issues with combing the literature review, and the systematic study of rural financial markets in the Liaoning Province this paper analyze the demand and the supply of the rural financial areas in Liaoning Province. On the demand side, , this paper examines the rural financial markets, the financial needs of farmers, the financial needs of rural enterprises, rural financial needs of public utilities system and the financial needs of rural infrastructure such as rural financial needs of the main acts in Liaoning Province, Results of the study show that rural financial markets has seven main typical features of the total demand for financial capital being large, financial capital requirements presenting multi‐level nature ,the financial ability to repay being relatively weak, a high‐risk financing, and lacking of effective security and bodies of investment and financing in Liaoning Province. On the supply side, the supply of rural financial markets have mainly focused on the supply of government funds, agriculture self‐accumulation of capital, financial institutions, capital supply, social relations and usury as well as international financing and corporate lending and other channels. Through systematic analysis of rural financial markets, we found that there is gradual loss of financial functions of policy, commercial finance function tends to weaken, increasing the amount of rural financial capital outflows, the rural formal financial institutions outlets to reduce and non‐formal financial should be standardized in Liaoning Province. Finally, this paper propose that to speed up rural financial market development strategies and recommendations by improving the rural financial market environment, reform and improve the rural financial system, deepening the rural financial system reform and improve the agricultural insurance system and other aspects in Liaoning Province.