The Research On The Development Of New Rural Financial Organizations In Hunan Province

Rural finance is the core of the modern rural economic development and a reliable security for rural reform and the process of urbanization. However, the current rural financial system can not fully satisfy the financial needs of most farmers. From the macro level, the formal financial system has been gradually away from the rural market and is profit-oriented in operation. From the micro level, the organizations, like village bank, micro-credit company and rural financial cooperative organization, are in a difficult situation and cannot effectively improve themselves in the scale, structure and efficiency. As has been proved by practice, the key point for the rural financial reform is creating a good "capillary system", which can effectively provide financial services in the rural areas. In December2006, CBRC (China’s Bank Regulatory Commission) issued the "opinions on adjusting and relaxing the access policy of banking institutions in rural areas to support the building of a new socialist countryside better", and then the central bank and CBRC issued several kinds of guiding opinions to encourage new financial organization to enter rural areas, laying a solid foundation for building inclusive financial system. Hunan, as a big agricultural province responses to it positively, but the new rural financial organizations face some problems or internal and external restrictions in their development:shortage of funds, insufficient ability to price the interest rate, big credit risk, lack of government support, the low quality of employees, lack of sustainability and so on. Therefore, the article, based on the deep analysis of the development and problems of rural financial organizations in Hunan province, combined with some specific cases, establishes the future development strategy of Hunan rural financial organizations and proposes specific measures for their sustainable development.