The Study On Rural Financial Exclusion Of China

A modernized rural financial system is crucial for agricultural economy development which is the key point while building up the new socialist countryside. In the past few years, the rural financial system has developed to a certain extent with the governmental support to agriculture and development of rural economy. However, as the establishment of new socialist countryside goes on, the weaknesses of Chinese rural finance break out, the most important one of which is the rural financial exclusion. It is urgent for our country to solve the rural financial exclusion, crack the thorny issues of agriculture, farmer and rural area, and develop modern agriculture.This paper works on the issue of Chinese rural financial exclusion and analyzes the mechanism of how the rural financial exclusion comes into being. Based on the theoretical model, we investigate and measure the level of exclusion. And also, we find out some causes of Chinese rural financial exclusion including the fragility of agriculture, poor financial environment, severe social exclusion and lack of financial education and financial information in rural area. Looking from the aspect of supply and demand analysis, we discover that this kind of exclusion is a kind of financial exclusion caused by supply. On the basis of all these analysis, we point out some measures on rural financial exclusion, such as accelerating the harmonious development of rural economy, enhancing the governmental supervision, improving the financial supply and financial environment in rural area, releasing the appropriate policies according to local conditions, strengthening rural financial education, diminishing the information asymmetry, and etc., so that we could not only solve the rural financial exclusion but also facilitate the healthy development of Chinese agricultural economy.