Establishment Of Rural Finance System In Socialist New Rural Construction Of China

New rural development, as a long-term, comprehensive engineering system, face several problems such as severe shortage of capital formation, insufficient funds for development, outdated infrastructure in rural areas, whereas lagging rural financial system development is the important reason led to these existed trouble. Improvement of rural financial system is of great significance to increase the effective supply of rural funds and promote agricultural and rural economic development. Therefore, based on the strategic requirement of establishing socialism new rural, the existing rural financial system needs to actively carry out reform and innovation.Throughout the status quo of capital needs of financial demand subjects in rural areas and resource allocation of rural finance suppliers, we know that China’s rural financial services provided by the system can not meet the demands. There are many questions need to be resolved in current rural financial system, for example, insufficient effort to support agriculture of rural financial suppliers, a massive outflow of funds in rural areas, lacking of agricultural credit products, low-rise financial services level, poor financial ecological environment and so on, which seriously restrict the modernization of agriculture and development of new rural construction. Thus, how to build a sound rural financial system, to provide effective finance for rural economic development, is a crucial issue desiderated to be solved.In this article, we learned successful experience of three typical rural financial models from the U.S., Japan and France, combined with China’s economic development situation in rural areas, and then set up the proposal of rebuilding our rural financial system. First, we must establish a multi-level, competitive rural financial system, where commercial finance, policy-based finance, cooperative finance and non-formal finance, each performs its own duties and functional complementation; and develop rural insurance system, to provide effective protection for agricultural production. Second, we must make innovations of rural financial product type, to increase agricultural credit support; improve financial service level, to raise efficiency of supporting agricultural finance. Finally, we must as soon as possible establish rural financial legal system, credit system and supervision system, to promote rural economy rapid and healthy development.