The Research Of Rural Financial Repression And Improvement Of Measures In Guizhou Province Finance

Rural finance is the core of the rural economy, which is the key factor to promote rural economy development. Since our country has reformed and opened, rural economy in Guizhou Province has achieved rapidly development, income of farmers has significantly improved and rural financial system has been effectively improved. But now the phenomenon of financial repression in Guizhou rural still exists, to a certain extent, which restricts the development of rural economyThis paper reviews the financial repression research at home and abroad, and based on the theory of financial repression, financial deepening and financial restraint, firstly the paper analyze the status of the rural financial system in Guizhou from the rural formal finance and rural informal finance,and found that rural financial repression exists in Guizhou. then using the financial ratios compared with financial development with the Guizhou Province and the national development level analyzed the level of financial development in Guizhou rural areas, the results are that Guizhou rural financial development has lagged behind of financial development in Guizhou, and Beginning in 2004, the gap with the national average level is gradually narrowing, even more than the national average level in 2009.Secondly, followed by the relevant ratio of rural finance and credit ratio in 1996 -2009, the paper empirically analyzes the rural economy and rural financial relationship. The Granger causality test showed that the expansion of rural financial development and the addition in the number of loans are able to promote rural economic development, and found that financial repression really exists in GuizhouThen, based on the results of the empirical analysis and the actual situation in Guizhou, researching the causes of the financial repression in Guizhou found that the root causes of rural financial repression are that large-scale rural formal financial merging County and the following financial services branch, resulting in rural financial market lack of effective competition , because of the current problems of The Agricultural Bank, the Agricultural Development Bank, rural credit cooperatives, postal savings Bank and other formal financial institutions in rural areas is not the full and effective supporting to agriculture, resulting in insufficient supply of rural financial body; non-formal financial is lack of effective supervision Management, coupled with the internal organization system is not standardized, business risk is high, market environment is confused, to some extent, which affects the implementation of relevant state policies and not promotes the rural economic healthy development; from the current rural financial market, Rural financial institutions to provide financial products are still the traditional deposits, loans, remittance-based, real needs of rural market economy, information technology and diversified financial products are very few, the financial service is lack of innovation in financial markets; agricultural of Guizhou Province is still in a "dependent on the weather " situation, agriculture faces enormous natural risks and market risks, although Guizhou has launched a pilot agricultural policy insurance, but because of the high rate of agricultural insurance claiming, commercial insurance institutions would not like to get involved in agricultural insurance, agricultural insurance development lag behind ; rural legal environment construction is just beginning, laws and regulations are still inadequate, some farmers and enterprises are lack of the awareness of integrity, financial debt cases sometimes occurred, which affect the rural financial ecological environment construction.Finally, according to Patrick's financial repression solution paths, Guizhou should choose supply-leading. As for the policy proposals of improving financial repression, the paper thinks that should deepen rural financial system, urging the formal financial institutions to improve the current weaknesses, play their strengths and increase financial innovation; strengthen guidance and norms on private finance, relax rural finance access threshold for financial markets and encourage various types of capital to establish a new rural financial institutions; develop agricultural insurance and capital markets to reduce the risk of agricultural production; optimize the rural financial ecological environment, speeding up rural credit system ,strengthening the integrity of education and publicity and increasing acts of evasion crackdown on debt to create a sound financial environment; innovate guarantee system in rural areas to improve the current lack of collateral as a result of rural loans hard problem; increase policy to support rural finance development and encourage other financial institutions to increase the credit loans; accelerate the process of market of interest rates in rural areas and reduce government intervention in the interest rate to effectively improve the efficiency of capital investment and resource allocation and promote social and economic development.