Study On The Problems And Countermeasures Of Rural Financial Market In Taiyuan City

In recent years, with the rapid development of China’s rural economy, rural financialmarket becomes increasingly unsuited to the requirements of economic development. Problemssuch as severe loss of resources in rural financial markets, serious contradiction between supply anddemand, insufficient market competition, and low efficiency seriously restrict the rural economicdevelopment, while our country has paid more and more attention to the establishment of ruralfinancial markets. The Seventeenth Party Congress clearly stated that we must balance urban andrural development and promote the construction of a new socialist countryside. The SeventeenthParty Congress also put forward that we must improve the rural market and agricultural servicesystem and promote the reform and innovation of the rural financial system. Third Plenary Sessionof the Party made the strategic plan for the establishment of a modern financial system and theconstruction of new rural financial system. The Eighteenth Party Congress report proposed thatsolving the problems of agricultural, countryside and farmers is the top priority of the party’s work,and that the integration of urban and rural development is the fundamental way to solve the "threerural" issues. Zhou Xiaochuan further proposed in the interpretation of the Eighteenth PartyCongress report that we should build a multi-level, wide coverage, sustainable rural financialservice system. Adapting to the needs of the rural financial evolution trend, pushing forward thereform of the rural financial system, improving rural financial services,and innovating the financialsystem which meets the needs of rural, have become the urgent need to solve issues concerningagriculture, countryside and farmers.With the acceleration of the process of financial market in our country, great changes havetaken place in the rural financial market. The rural financial market has gradually developed by asingle national banking system into one that consists of the formal finance such as policy banks,commercial banks and rural credit cooperatives and informal finance such as folk funds, unitedsociety and underground banks. However, the rural financial market development is still laggingbehind. In order to reveal the problems and causes of the rural financial market of Taiyuan, putforward the corresponding countermeasures and provide some valuable suggestions for the reformof the rural financial market, the construction of a new socialist countryside and the accelerationformation of the new pattern of integration of urban and rural economic and social development inTaiyuan area, this article based on the principle of combining qualitative analysis with quantitativeresearch conducted a survey of the current situation of the rural financial market of Taiyuan, startingfrom current situation and existing problems of supply and demand in Taiyuan’s rural financialmarket development. This study figured out the main existing problems of the rural financial marketin Taiyuan through surveys of the Taiyuan rural financial market supply and demand situationwhich adopted the method of combining questionnaires, empirical test and theoretical analysis.I Internal contradiction of commercialization in rural financial market is prominent. Thedemand side is so wide and the demand for funds is so large of the rural economic developmentcredit market in Taiyuan that financial institutions can not meet the funding needs of the rapiddevelopment of the local rural economy to a large extent. II Effective mechanism of capital flow is lacking in rural financial market.III The ecological environment of the rural financial market is getting worse.IV The financial authorities ignored the guidance and supervision of informal financial.V Effective competition mechanism is lacking in the rural financial market.This article put forward the following corresponding countermeasures aiming at the existingproblem of rural financial market in Taiyuan:I We should accelerate the reform of the rural financial market system, improve the ruralfinancial market organization system.II We should actively promote rural financial innovation, improve the rural financial marketservice system.III We should develop the new rural insurance market and improve the agricultural insurancesystem.IV We should strengthen the government’s functional orientation and respect for theindependence of the rural financial market.