Research On The Development Of The Small Rural Financial Organizations

As an important part of Chinese financial system, small rural financial organizations has attach great attention of the Chinese government. Since December2006, China has adopted a number of important measures to promote the development of rural financial markets, especially small-scale rural financial organizations. By the end of2011, rural credit cooperatives’total assets reached7.2047trillion yuan, and at the end of2012, there are1433village banks and6080small loan companies in our country. The development of small-scale rural financial organizations can effectively enhance the intense degree of competition in the rural financial market, and compensate for large financial institutions’weaknesses in the field of financial services to meet the diverse financial needs of rural economic development. In addition, the small rural financial organizations could provide financial support for the development of the rural economy and promote the development of the rural economy. Therefore it is significant to the overall operation of the rural economy. Small rural financial organizations have much room for development with its own advantages in the rural financial market, and the rapidly and healthy development of it could provide strong support and a reliable basis for the development of Chinese rural financial system.Based on the summary of the small rural financial organizations theory, this paper describes the development status of Chinese rural micro-finance organizations and concludes the difficulties that faced by our small rural financial organizations, such as lack of talent, limitations of business development and risk of monitoring imperfections. Then, by analyzing the development of the German Bank in Bangladesh, India NABARD micro finance institutions and the German cooperative banks system and taking the development of Chinese rural micro-finance organizations and Chinese specific national conditions into consideration, the paper give some policy recommendations for Chinese rural economic development from the perspective of both micro and macro social environment. Firstly, the micro suggestions consists of establishing a good image, raising social awareness of the small financial organizations, improving staff quality, optimizing the structure of human resources, determining a reasonable level of interest rates and constantly enriching the product system based on the small country and serving to the "three rural". What is more, the Marco suggestions include strengthening financial policy, expanding funding sources, strengthening government functions, clearing its position in the development of the rural financial development, improving the rural financial legal system, creating its adapting regulatory system, building a good financial environment for the development of sustainable small-scale rural financial organizations and establishing the agricultural insurance system.