Research On The Innovation Of Rural Financial Legal System

Finance is the core of modern economy. During the foundation and development of China’s socialist market economic system, rural finance has played a significant role in such aspects as optimizing resources, adjusting economic structure and improving quality and efficiency of economic growth. To ensure the core role of finance fully played and effectively implemented, in the past30years, under the direct leadership of central government, our country has been accelerating the reform and innovation of financial system. During this process, however, the reform and innovation of rural financial system is implemented under the propelling of the policies. The lack of legal protection and insufficient innovation of legal system result in the following situations as low legal hierarchy led to by the financial legal system’s foundation which is long-term dominated by policy documents in our country, attaching importance to formal finance and guidance of the macro-areas, looking down upon the informal finance and construction of the micro-areas and neglect of farmers’financial interests protection. With the further development of rural economy in our country, the rural financial system has played a more and more prominently inhibiting role in financial development and the damages led to by the lack of laws are getting severer and severer. On the one hand, the insufficient supply of the formal financial services and obvious non-agricultural conversion bring dramatic difficulties for farmers to realize the benefits of modern finance. On the other hand, in face of the enormous rural financial deficit and marginalization of rural finance, the informal finance is emerging and expanding rapidly under the environment featured by "no supervision, no legal status, high risk and high interest rate". To solve the above-mentioned problems, a sustaining and protective system of the rural finance is urgently required to perfect and match and unfreezing the restrictions of rural financial development is as well doomed to be implemented.The innovation of rural financial system is supposed to adhere to the principles as government’s moderate intervention, economic safety, tilt protection and coordinated development. As for rural financial legislation, discrete mode and moderate tilt of value are supposed to be adopted; meanwhile, the rural informal financial legislation is expected to be perfected so as to guide the informal finance to expand in a normative way. In term of the specific systems, the specialized legal system for rural finance supervision is supposed to be actively investigated and founded, China’s agricultural insurance legislation is expected to be completed and agriculture guarantee legal system of our country is supposed to be perfected.