Reality And Countermeasures Of China's Rural Financial Services

As the blood for a country's economic development, finance provides an important support in the progress of country's development. Rural finance also plays an irreplaceable role in the development of the modern rural economy. After the reform of rural financial system for about 30 years, China's rural financial service system has already formed basically, the cooperative finance has been the main part of the system, and the commercial and policy finances are also as the supplement parts of this system, besides that, the informal finance is also included in it. However, due to the vast rural areas of China, there still exists a huge gap between the supply and the demands of the funds in these areas. Lacking financial funds has been the great barrier to the further development of the rural economy.The slow economic development in rural areas and the decline of farmers' incomes have the great relationship with the slow development of rural finance. From the characteristic perspective of China's financial reform, it is clear that we take urban too much, but the development of rural finance is not satisfied, and the inadequate rural financial service system has been restricted the rural economy severely. In recent years, government of Qingdao attaches great importance to the "three rural issues", and they have issued many policies to strengthen the financial support for the farmers, rural economy has been developed rapidly, and the farmers' income has also increased a lot. But with the further development of Qingdao's rural economy, the demands for the financial services have been gradually expanded. By the restriction of institutional, policy and other factors, there still exist some deeper problems. Therefore, study the problem of rural financial services of Qingdao, explore the path to optimize the regional rural financial services, make recommendations to optimize the rural financial service systems, all of these will have a great importance to make researches of the services of rural finance in Qingdao.This article is divided into five chapters. The first chapter is the introduction of the background, purpose and the meaning of the thesis. Based on the study of the theories and the literature reviews, we explain the thoughts and the methods of the article. The second chapter analyzes the rural financial services of Qingdao from both the supply and the demand aspects. The third chapter is the international comparison and experience learning from both the United States and India. The forth chapter explains the contradiction between supply and demand of rural financial services from four aspects, including the contradiction between the diversity needs of rural financial products and single products produced, lack of the supply institutions and the shortage of the supply funds, lack of the practitioners and the creative-talented persons, lack of the qualified mortgage with the famers and the risk control system needs to be improved. Besides that, we also analyze the causes of the contradictories. The last chapter designs the rural financial services of Qingdao from the aspects of both demand and the supply levels.