Reaserch On The Financial Support In The Development Of Rural Economy

Since China carried out reform and opening up, the whole national economy has been rapid development. However,China’s growing economic has produced big gap between urban and rural areas. In order to protect China’s economy which can be healthy,stable and sustainable development, enhancing the " Agriculture, Countryside and Farmer" economic is a historical necessity. Income, therefore a lot of capital should be invested in rural areas. How to introduce the fund into rural areas effectively or change the fund into the capital of the new rural construction?This need an effective and sound rural financial system. Therefore, it is necessary for building a sound and efficient financial system in rural areas that researching into the relationship between China’s rural finance and rural economic growth and analysising the deficiency of the China’s rural finance in promotpromting rural economic growth. Among all the researches on the current rural financial problems, most of them are concerned about the mechanism of the development of rural finance to promote rural economic growth or the statistical description of rural financial development status. This paper, firstly based on previous studies, then analyzed the present situations and problems existing in current financial development in rural areas of China. By analyzing related data,we are clearly aware that financial suppression phenomenon is extremely serious.This paper began from analyzing the present situations and problems existing in current financial development in rural areas of China.Then on further analysis of dilemma of our rural areas financial development, and the reasons of why rural financial do not support rural economy. This paper believed that the major reasons can be summarized follows:the rural financial system is not in perfect, the rural policy financial support is limited, the commercial reform of agricultural Bank weaken its key role in the support of rural economic development, the reform of rural credit cooperatives still having many difficulties, so it difficult to fulfill their main force by giving support to rural economic development. The siphonage of the postal savings stations weaken financial resource to support economic development.Finally,the paper provides some corresponding countermeasures and suggestions.Above all, the rural financial system should be further improved, accelerate the innovation of rural financial instruments, establish the mechanism of fund return to the rural areas, and deepen external environment for the development of rural financial.