Improving Policies Of The Government Regulatory System In China’s Rural Finance

Agriculture is a special department of the national economy. On the one hand, it is thefoundation of the national economy is a prerequisite for the development of other industries,the strengthening and promotion of agricultural production is the major event in a matter ofnational economy; other hand, it is a long production cycle, by the natural conditionsrestricting economic relatively low efficiency of a weak industry. In recent years, withintensive, increased mechanization, agriculture gradually from the labor-intensive industriesto capital, technology-intensive industries over-reliance on capital continuously improve. Inview of the financial system has brought together social capital, improve capital efficiency innew rural construction in solving the bottleneck problem of the industrialization of agriculture,the reform and development of the financial regulatory system is one link can not be ignored,the health protection of the rural financial market development will undoubtedly important tothe development of rural areas of society as a whole.China’s rural financial with the city’s commercial and financial, it has a high the risk ofline and the uncertainty involved in a wide range of policy. In such a complex financialenvironment, our country so far has not set up a sound regulatory system, the development ofrural financial markets is the lack of legal protection, especially not under the supervision ofnon-formal financial markets, the major financing channels for rural residents the one hand, ithas played the role to complement the formal financial failure, on the other hand, the inherentfinancial risk to give the local economy caused immeasurable loss. The Government mustmake the right choice according to the actual situation and build a regulatory system that isable to improve the financial efficiency while maintaining the financial security.