The Research On The Rural Financial System Reform In China

Our country is a developing agricultural country, so the center of our country ’s rural work hasalways been placed on the solve of the "three rural" issue about the agriculture, countryside and farmers.Since the21st century the "three rural" issue about the agriculture, countryside and farmers issued by thecentral government as the No.1files every year, this fully shows that our country ’s government highlytreats of the "three rural" issue and solves urgently the "three rural" issue. The good development of therural economy is the key to solve the rural problems, and the development of rural economy can not lackthe financial support. Whether the rural financial system is perfect, it relates to provide efficient servicesfor the rural economy. To solve the "three rural" issue and guarantee for the stable and rapid developmentof the rural economy, we must have a good and standard financial system to provide support and protection.When our country enters the stage of rapid developments of economic construction, our country must speedup the pace to develop the rural financial system reform and narrow the gap between urban and ruraldevelopments of our country.Why is the foundation of our country’s agriculture so weak? Why does the development level ofour rural economy lag behind the city so much? Why will the gap between urban residents and ruralresidents be bigger? There are many reasons which can cause these problems, but the main reason is thatmost of the rural areas in China have a serious shortage of money supply. If we want to development theeconomy of our rural areas, we must first solve the problem of money. The problem about money includesthat the farmer’s income is low. The necessary condition of the development of rural economy is thesufficient supply of the rural capital. At the beginning of the development of the economic social in ourcountry, we attach great importance to the urban construction, and we put the money of the rural into urbanthrough various channels. It has played a large role for the city’s economic construction, but thedevelopments of the rural areas become relatively slowly. Our country’s economic development has thecharacteristics of the binary system. The central government increased spending in rural areas. Later, theemphasis of developments in China has shifted from the industrial to the agriculture and from the cities tothe countryside. Our country’s financial sectors improve the rural financial support through all kinds of efforts. Our financial department launches the reform of agricultural institutions and also explores toestablish a variety of services about the form of rural financial supply to achieve the goal of increasingagricultural money.Although the Chinese government and the financial sector have made many efforts about ruralfunding, it still can’t relieve this phenomenon about the rural shortage of money. What is the reason of theshortage of money supply in rural areas in China? This paper argues that the problem of China’s ruralfinancial system led to a serious unreasonable on the allocation of resources in our country. This paper alsoargues that to solve the problem of rural capital at the end of the day is to reform the existing rural financialsystem in our country and to integrate the capital resources of our country. In order to promote the ruralfinancial development, we should do theses from three aspects. First, we should accelerate theestablishment of a perfect rural financial service system. Second, the policy should tend to the rural supplyof money. Third, we should allow to other forms of rural financial organizations to enter the rural market.Rural financial institutions play a huge role in the allocation of rural finance. This is the objectiverequirement of the rural economic development at the present stage in our country. This is also of profoundsignificance to solve the problem of "agriculture, rural and farmers"-the "three rural" issue and building anew socialist countryside.Through the study of growth process of rural finance in China and the rural financial systemreformation ’s environment, we analyzes the problems and some institutional drawbacks existing in thedevelopment of rural finance. We also put forward the direction of the rural financial system reformation.We can combine the policy guidance with market mechanism. At the same time the paper also expoundsthe international success stories of the rural financial system reformation, and we get some enlightenmentabout the development direction of Chinese rural financial system.