The Study Of Agricultural Policy Financial System

Since the21st century, the issues concerning agriculture, countryside and farmersin our country has become the key point for promoting economic and socialdevelopment, improving people’s livelihood and building a harmonious society. In2013,China’s rural financial reform has been ten years, the achievements of reform for all tosee. At the moment, the rural finance remains a weak link in our financial system,"getting loans" is a major constraint on increasing farmers’ income. While relying onexisting commercial banks and rural credit cooperatives can not solve effectivelyservice "three rural" development finance demand. Because the existence of adverseselection and information asymmetry borrowers aspects such formal financialinstitutions and between rural borrowers, the cost of the existence of moral hazardbehavior, and aspects of formal financial institutions, asymmetric risks and benefits,resulting in shrinking financial services in rural areas. Therefore, the rural policyfinance has become an important part of the rural financial system.At present, China has established a policy of rural financial system, which plays apositive role in promoting the economic development of rural areas, increasing farmers’income. However, there are still many to be perfect in China’s rural policy financialsystem. Therefore, this article will be the policy of China’s rural financial system as themain object of study, through the analysis of both theoretical and practical levels, to findout further improvement to China’s rural policy financial system.In front of this paper describes the theoretical theory, by means of Westerneconomics, development economics, the relevant theoretical research on “rural policyfinance” was carefully combed. In practice, elaborated later in the first empiricalresearch study by using descriptive and comparative study, the combination of methods,the financial system of China’s rural policy development process, current situation,problems and related causes were analyzed. Then, with the interpretation and analysis ofthese two important methods through the use of induction, carefully developed anddeveloping countries on the international experience of rural development policyfinance be summarized. On this basis, this paper puts forward the specific path ofChina’s rural policy finance system.