The Rural Financial System Problems In China And The Countermeasures

It is thirty years Since the reform and opening up to now, in China's rural areas economic structure and organization of agriculture has a great deal of changes, and adapting to the development of rural economy, China has made many reforms in the rural financial system. However, rural financial services and rural economic development is still very prominent contradiction, these reform measures do not fundamentally solve the problems. At present the "three rural" issue is still the Chinese government's major problems to solve. There are many factors to lead to the "three rural" problems, a very important factor is the arrangement of rural financial system in rural areas can not meet the financing needs of economic agents, thus affecting the development of rural economy and the farmers' income increase, expanding the gap between urban and rural areas, therefore, to promote rural financial system has become the focus of China's rural economic development theory in the study.On the one hand, building a new socialist countryside in the context of rural areas has a great demand for funds; on the other hand, the problem of lacking of funds in China's rural society has been a long time, China's rural finance has a functional defect for a long time. China's existing supply of rural finance can not meet the financial needs in rural areas.It is over 20 years Since China's ongoing reform of rural finance in 1985. but the outflow of capital in rural areas, rural financial supply can not meet the demand is still not reversed, then what is the root cause? This discussion paper, indicating the existence of two-shortage problem of the rural finance needs and the rural financial supply. Today's rural financial development requires a lot of money, today's rural financial system obviously does not meet this demand, and thus to increase the supply of rural finance and the financial needs of activation rural effectively, this paper made a number of recommendations and policy changes to promote a balanced approach of supply and demand of rural finance system; then analysis of China's rural financial market in general shortcomings and deficiencies, and then later of the following is to improve and strengthen China's rural financial market system and strengthening the rural financial market supervision.Paper is divided into seven chapters:The first chapter is the introduction, this chapter is divided into four parts:First, the study raised the question; second is to define the basic concept; third is to propose the research framework and methodology; Finally, this paper points out the possible research and innovation as well as shortcomings.The second chapter discusses the the outstanding problems of China's rural financial system in the reform process, the first analysis is the financial supply for farmers, and the second part of the analysis is the institutions of the financial supply of rural enterprises, and the third part analyzes the financial supply of township enterprises; Followed by analysis of the exposed areas of rural financial supply problems; re-analysis of what caused the imbalance between supply and demand exist in rural finance;The third chapter is the general shortcomings and defects in China's rural financial market,analysis of China's rural financial organization system has the following deficiencies and defects:①Lack of a sound money supply and the market price mechanism;②Inadequate supply of funds;③Financial products type is single;④Dismantling market development is not perfect;⑤Risk management is not fully functional;⑥monopoly makes the operation inefficient;⑦Rural credit guarantee system is not perfect. Second, analysis of the stock market dysfunction.Chapter IV is the foreign experiences and learning from the rural financial system, mainly to write the following recommendations:①Improving rural financial organization system;②To support the basic objectives of the rural financial system is very clear;③The government give their own agricultural economy good policy support;④Attention to the development of cooperative financial organization;⑤Different types of financial institutions in rural areas have some cross;⑥Founding better compensation mechanisms and systems;⑦Establishing a sound system of agricultural insurance;⑧Rural branches in the financial system have a clear division of responsibilities;⑨Establishing a relatively sound rural financial law and institution;⑩According to local circumstances, establishing the rural financial organization.ChapterⅤis to develop and improve our financial organization system, the first part is giving full play to china's rural policy finance function;the second part is that the Government formulate policies to guide commercial financial institutions to conduct business in rural markets; the third part is to develop new rural financial institutions in our country;the fourth part is to nurture and develop China's rural capital market;the fifth part is to further improve China's agricultural futures market.ChapterⅥis to strengthen China's rural financial organization system, the first part is to establish fair market competition mechanism in China's rural areas;the second part is to build an effective rural risk-sharing mechanism in rural areas.ChapterⅦis to strengthen and improve China's rural financial regulatory system, first part is to clear China's rural financial regulatory objectives; second part is to improve our existing rural financial regulation; third part is the rural financial regulatory system needs further improvement, also introducing the following points:①Establishing effective local financial regulatory mechanisms;②To maintain and develop the financial industry self-regulatory organization;③Internal control system of rural financial institutions need to be further strengthened.