Research On Symbiosis Of Rural Formal Financial Institutions Towards The "three-rural"

Since2004, the Chinese Party Central Committee has released the No.1Document which emphasized the importance to solve the "three rural" issues, and focused on the financial reform in rural areas in order to promote the development of rural economy. However, the developing rural finance is suffering from the practical dilemma, that is the commercial financial institutions’ function in the field of rural finance is severely weakened, the policy financial institutions are incompetent, and due to the defects of its setting the cooperative financial institutions are unable to meet the financial needs of the rural economic development, so that a large number of farmers’ financial needs can not be effectively met. The level and diversity of financial needs presented by the rural economic subjects determine that a single financial institution can not occupy the rural financial market. This paper attempts to explore the interaction and cooperation between different types of rural financial institutions from the symbiotic perspective and to do a in-depth research of the development of the rural formal financial institutions.First, based on the Symbiotic Theory, this paper has a new understanding of some basic concepts of finance, classifies three elements of the symbiosis of rural financial institutions, including symbiotic environment, symbiotic unit and symbiotic model, and standardizes its conditions. Although there are many financial symbiotic units represented by the Agricultural Development Bank, the Agricultural Bank of China and the rural credit cooperatives, the process of rural financial market construction is slow, the laws and regulations are imperfect, the competitive environment is disordered, and their functions are not clear that behaves in a competitive way rather than cooperation. In the symbiotic system, the resource allocation will be more effective, and the development of institutions will be more orderly and balanced.On the basis of the theory and status quo, according to the similarity between the rural financial institutions’ growth and the biological population growth that they both come through a produce-development-stability symbiotic evolution process, this paper adopts Logistic Model as a basic model to fit a growth curve of the three rural financial institutions, and simplifies the symbiotic model among the three institutions. According to the evolution path of their logistic growth curve, all of them are at the first stage of the curve, and they will enter the mushrooming growth stage with a positive accelerated speed. Early in the market, the three rural financial institutions have different symbiotic sacrifices with different functions. The Agricultural Development Bank plays a market pioneer role depending on its low cost, while others play the complementary role on the region and function with the Agricultural Development Bank, so that a continuous asymmetric reciprocal symbiotic model is built. However, three financial institutions’credit scale is still far from the optimum scale for the support to agriculture, the financial institutions’credit scale is dependent on the country’s preferential policies and tax subsidies to some extent, the rural financial institutions’symbiotic model is not stable, the deepen reform is urgently needed to expand the business and devote more efforts to support agriculture.