Based On The Research Of Rural Financial Construction In Hunan Province

One of the important strategies in China’s social and economic development is to achieve urbanization in rural areas. Successful urbanization initiatives must consider solving issues concerning agriculture, famers and rural areas. As an engine of economic growth and development in rural areas, financial services can determine the efficiency and quality of economic development. Currently, compared to urban areas, financial services in rural areas have fallen behind. Outdated institutions and lack of services have harmed productivity in rural areas of China by restraining its overall economic development. In the context of urbanization of rural areas, it is essential to establish a functional and effective financial services system. Such services are necessary to improve the economy and overall development of rural areas.This thesis analyzes methods of restructuring a financial services system in rural areas under urbanization strategies through the following sections.It first defines the theoretical basis of the rural area under investigation, and clarifies theoretical direction of restructuring rural areas of the financial service system. The three theories under consideration are:Financial Services Supply and Demand Theory, System and Structure Theory, and Financial Services Resource Theory. Taken together, these three theories become the theoretical foundation of the research and analysis in the thesis.The thesis then focuses on analyzing the supply and demand of financial services in rural areas undergoing processes of urbanization. At the conclusion of this analysis, the author presents findings that direct cause of imbalance in the financial services system concerning rural areas is due to a lack of supply and an inability of meeting consumer demand. Moreover, it introduces the financial services in rural areas overseas. By analyzing imbalances of demands and supplies of financial services in rural areas, the author further systematically and comprehensively summarizes the existing problem as an urbanization process;Then, based on this background, the research of hunan province, the overall status quo of rural finance, and analyzes its financial supply main body, found that the existing problems, and gives a reasonable policy suggestion, and put forward the improvement of hunan province, the strategic framework of the construction of rural financial system: First, improve the policy financial support, the agricultural insurance system, the rural financial ecological environment as the main content of the mechanism for the construction of the rural financial foundation, on the whole guarantee the supply of rural finance;Secondly, the construction of a multi-level rural financial service system, develop various attributes of rural financial services institution, improve the competitive rural financial market;Once again, and actively guide the various financial institution, to provide financial services and products suited to the characteristics of the rural financial demand.