Research Of Building A Hierarchical Supervision Mode For Rural Financial Institutions

Rural Finance is the core of modern rural economy, which occupies a pivotal position in the deepening reform and development process of rural economy. But in China’s financial system, the weakest link is still rural finance. Customers’ financing difficulties, the confusion of financial supply situation, lack of financial supervision and other issues, exist to varying degrees in rural areas. So it is difficult to effectively meet the new trend and new requirements of China’s current economic development situation. Rural financial supervision as an important line of defense in rural finance development should play a fundamental role in rural finance work, and China’s current rural financial regulatory system has not adapted to the development needs of rural finance. Therefore, how to effectively explore the existing rural financial regulatory model;to find the appropriate regulatory model to meet the needs of China’s current rural finance development. It has become an important issue in rural finance need to solve.In this paper, we built tiered regulatory model of China’s rural financial institutions for the study; analyzed the current situation of rural financial regulation; on the basis of drawing on the experience of foreign rural financial supervision, proposed the stratified regulation mode of rural financial. Through the study of China’s existing rural financial institutions regulatory model, we found that although the current unified regulatory approach has played a positive role in promoting China’s rural financial development, with the rapid development of China’s economy, the taken model has been unable to meet current needs. Mainly the responsibilities in regulatory framework are unreasonable; the market mechanism of access, operations and exit of rural financial institutions is not perfect; and the current policy regime is difficult to effectively avoid financial risks, including non-formal rural financial risks. By analyzing the loopholes of the current range of rural financial regulatory, the inadequate regulatory body, and the deficiencies of regulatory system in our country, it emphasized the main problems existing in China’s rural financial supervision is not only the efficiency of regulation, but the effectiveness of the regulation. It foreshadowed the selection of tiered regulatory approach. Learning relevant theory and practice of foreign rural financial regulatory model, we proposed the stratified mode of rural financial regulation, and pointed out the need of building a tiered model for China’s rural financial regulatory. The use of principal component analysisempirical analysis verified the effectiveness of implementing the stratified regulation in the countryside. Combined with the actual situation of China’s rural finance development, we put forward some corresponding policy recommendations to promote the development of rural finance better.This paper proposes a hierarchical regulatory approach to effectively address the current problems of rural financial supervision, and we hope to provide a reference for rural finance effective supervision, and to provide an effective way for the construction of rural financial homeostasis.