The Current Problems And Its Solutions For Financial Market In China's Rural Area

Rural financial problem is an important problem of China's rural economic development. Compared to urban market, rural financial market is more difficult to obtain financial support. This paper analyzes China's current rural financial market realities, pointing out the existing problem of China's rural financial market, and puts forward the effective measures to solve these problems. The rural financial market of our country existing issues are: funds shortage, agricultural capital conversion, informal finance lacking standard, the lack of rural industrialization guide. The main causes of the rural financial problem are, from the supply side, mainly due to credit rationing, the imperfect rural financial service system, poor rural financial ecological environment; from the demand side, mainly owing to the underdeveloped industry, lack of collateral. This paper point out the way to solve this problem: financial institutions should integrate industry chain; extended source of collateral; allow private capital to enter the rural financial market. More important, from the case of Agriculture Bank of China, we summarize four steps about solving rural financial problem: focus on key industries, the development of service measures, training and team building, the plan of county branches. We have two mainly methods: we support leading enterprises to grow and extend the industrial chain business; we support the leading enterprises development local unique resources.