Problems And Countermeasures Of China’s Rural Financial Development

Over the past30years of reform and opening-up, under the correct leadership of the party andthe government, after generations of hard work, construction projects in various aspects of Chinahas made remarkable achievements. China is a large agricultural country, so the "three rural" issuesbecome the top priority of the work and are highly valued by successive governments. Thedevelopment of agriculture, rural areas and farmers are inseparable from the support of rural finance,rural finance has also become the common focus of attention of all walks of life. The developmentsituation of rural finance directly affects the rural economy level, thereby affecting the realization ofthe strategic objectives of a new socialist countryside construction. This situation not only putforward higher request for rural financial services but also brought new opportunities for the ruralfinancial development. However, the slow development of China’s rural financial industry hasseriously hampered the development of rural economy. China has faced with a variety of problemswhich exist in the current rural finance, this paper in-depth analysis the root causes of the problemsbehind. According to the needs of rural economic development nowadays，and compared to therural financial development of foreign experience, find ways to solve all kinds of problems, thispaper is to research this topic.Rural finance definition, connotation and related theories are elaborated; the course andpresent situation of the countryside financial development are summarized in this paper. At thesame time the author points out there are some problems existing in the development of ruralfinance, such as: the imperfect of rural financial service system; the negative impact of the privatefinance; the exodus of rural funds, and the lack of risk compensation mechanism in rural areas.Meanwhile, related factors which restrict the development of rural finance were analyzed, combinedwith the enlightenment of the rural financial development situation in typical foreign nations; thispaper puts forward the countermeasures of development of Chinese rural finance: perfecting ruralfinancial system, promoting financial system innovation, creating an environment for the financialdevelopment, accelerating the rural financial service innovation, improving the quality of ruralfinancial services, and planning countermeasures for the rural the development of the financialindustry. Strive to fundamentally solve problems that exist in the rural financial development andthe aim is to promote sound and fast rural financial development.