The Study On The Development Of China’s Rural Financial Organizations Based On The Regional Economic Differences

On the view of the historical experiences of different countries’economic development, financial development has a great role in promoting economic development. China must accelerate the pace of financial reform.In the international context of the establishment of the integrated global financial markets, as the interest rate marketization, In the international context of the establishment of the integrated global financial markets, the second Five-Year Plan explicitly calls for deepening the financial system reform in China. Since the34years of the opening up of the reform, China has undergone enormous changes in the financial markets. And in the new era, as an important part of the modern financial system, rural finance is the key of solving "three agriculture" problem, promoting the development of rural economy and realizing rural modernization. Backwardness of rural finance would hinder the overall leve of China’s financial improvement. It also will affect the improvement of China’s international status and economic level.Rural finance areas are divided into three classes, namely developed areas, more developed regions and less developed regions. After summing up problems of the development process of the rural financial organizations and analyzing what makes the difference of financial development level in different regions, we can find that it has a dramatically differentiation in rural finance of different regions. Developed region has gradually developed into non-agriculture. Farmers’loans are more used for production. People have significant demands for loans and need diversified financial services. Financial development needs are their principal demands. While in the more developed regions, the demands of rural financial loans have a relative reduction and loans for living are more than for production. But in the in the more developed regions, rural finance is still in its original state. Deposits and loans are the main demands. Through analysis, development levels of rural economic, the duality of rural finance and rural per capita net income are the main influencing factors which constitute the difference of China’s rural financial demands. Rural financial development level is measured by the finance-related rate of FIR. It can be concluded that developed areas have a highest FIR followed by the more developed regions and the less developed regions. This means that the level of financial deepening in developed regions is relatively high. The results of empirical test tell us that rural financial demand has a weak positive correlation with the first per capita output value of industry and has a significantly associated with rural per capita net income.At last, on the basis of the existence of the difference of financial development in various regions, it studied the development of rural financial organizations in different economic regions and proposed countermeasures by analyzing the problems faced by the development of rural financial organizations in various regions, combining the main factors which influences the difference of financial development and drawing on the development mode of foreign rural financial organizations in order to find the direction of development of China’s rural financial organizations in different economic regions. Which is that the first development areas induce effect on the lately developed areas in the developed areas, more developed regions act as a connecting role well and less developed regions begin with solutions to the most fundamental issues of borrowing to gradually catch up with the more developed regions.