Study On China's Rural Finance Risk: Question, Design And Prospect

Rural financial risks, which have different characteristics with other general industry in operation, accompany rural financial operations. General industry risk has a partial impact on the economy, without destroying the whole rural socio-economics. And the rural finance once significant operating risks happened. For example, large-scale deposit loses, which will quickly lead to financial turmoil. Under that condition, the rural economy and even the whole financial operation will come to a standstill. The harms to socio-economics are not only leading to decreasing financial institutions' capacity to pay, reducing the interests of depositors and impairing the reputation of the socialist rural financial industry, but also aggravating fiscal contradictions seriously, forcing the central bank to issue currency more, and ultimately leading to inflation, endangering the stability of the national economic development.Under the condition of socialist market economy, guarding against and defusing financial risks is city men' work and it is even very important for national economy. Guarding against and defusing financial risks currently is more important and urgent than in any other time, especially for the rural financial risks. The literature referred to China's rural financial risks is so much, but most of them focused on the individual research or the static analysis failed to give adequate consideration to the influence of WTO on China's rural financial development. It is a breakthrough that the research explores the theory of origin and value of the China's rural financial risks in the opinion of the management, financial risks, agricultural economics, economics of institution and sociology, on this basis of which give the strategy of preventing and resolving rural. Financial risksThe thesis is composed of nine chapters, which is divided into three parts according to the logic of "problem-design-prospects". The first part composing first three chapters is a general; mainly describe the purpose and significance from the macroscopical point, also including definition of rural financial in theory, the economic analysis and the forms and causes of rural financial risk. In addition to the status of rural financial risk assessment, there is more international comparison study on the rural financial risk management in developing countries. Primarily by the analysis of the rural financial risk management in India, Brazil, Egypt from the institutional and cultural background, the study looks for the revelation for rural financial risk management. The second part from chapter four to chapter eight is the core part, which mainly designs strategic planning directing against prevention and resolving of China's rural financial risk. The penman advances the strategy of preventing and resolving financial risks at the basis of comparative study in the first part. The thesis takes the point that we should reconstruct rural financial system of division of labor and cooperation between the commercial bank and policy bank based on financial cooperation according to the requirements of agriculture and rural economic development,the Outline of the Eleventh Five-Year Plan and vision of agricultural development in 2010. Strengthening the financial supervision and deepening rural financial reform of the property rights system, as a result optimize the external environment, construct the system of rural financial risk management, prevent and resolve financial risks, further more improve service in rural finance, increase input in agriculture, promote combination of trade, industry, agriculture and the unified design between the city and the countryside and accelerate agriculture and rural economic development and opening up. The second part is in accordance with the logic of study discuss strategy of preventing and resolving financial risks from remodeling the rural financial system, strengthening the financial supervision, deepening the property rights system reform of rural financial and optimizing external environment. Then we construct the system of China's rural financial risk management based on that. The third part of the thesis is composed of chapter 9——prospects, analyzing prospects and risk prevention of China's rural finance under the frame of WTO on the basis of previous discussion.The literature related to rural financial risks is in plenty. While providing references, they make it more difficult to break through the style of traditional research and have innovation. This thesis attempts to break through the traditional style from the content and methodology.1. It analyzes and discusses the meaning in theory and causes of rural financial risks. Rural financial risk is objective uncertainty of capital loss in rural financial action under market economy. Uncertainty is inherent attribute of rural financial system, can not be eliminated completely. Uncertainty is closely related to the working of market economy, and has important influence for disposition of rural resource which is rather scarce under competitive goal. Rural financial risk which has different cause of formation with other General industry in operating risks, is accompanying the rural financial operations. On the external environment of it, imperfect market mechanism, negative effect of macro coordination and imperfect legal system are the major reasons which take shape the rural financial risk. On the internal environment of it, deviation of operating guiding ideology, imperfect internally piloting and low quality of staff are the major reasons which take shape the rural financial risk.2. It advances the strategy of preventing and resolving China's rural financial risks. The thesis systematically study rural financial risks and advances the strategy of preventing and resolving China's rural financial risk. The thesis takes the point that we should reconstruct rural financial system of labor division and cooperation between the commercial bank and policy bank based on financial cooperation according to the requirements of agriculture and rural economic development,the Outline of the Eleventh Five-Year Plan and vision of agricultural development in 2010. Strengthen the financial supervision and deepening rural financial reform of the property rights system, as a result optimizing the external environment, constructing the system of rural financial risk management, preventing and resolving financial risks, further more improving service in rural finance, increasing input in agriculture, promoting combination of trade, industry and agriculture, the unified design between the city and the countryside, accelerating agriculture and rural economic development and opening up.3. It advances specific ideas of constructing the management system of China's rural financial risks. The thesis advises specific ideas of the constructing the system of China's rural financial risk management relying on economics, finance, and rural economic management, on the basis of previous discussion. The specific ideas are that establish an early warning mechanism of rural macro risk, rural medium risk and rural micro risk, in order to supervise financial institution on every side and protect steady operating of every financial institution.4. It discusses and analyzes risk prevention of China's rural finance under the frame of WTO. Under the frame of WTO, This study discusses and analyzes macro prospect which is international trend, native trend and competition trend of China's rural finance, and micro prospect which is mixing trend, polybasic trend and electronic trend of China's rural finance. This study put forward that the crux of the matter is that establish an independent and high efficiency system of financial organization for supervision and management and a complete and perfect rules and regulations of financial organization for supervision and management.