The Study On Rural Credit System And Rural Financial Restructing

This paper intends to study rural credit system of China. The result shows that the majority farms' credit demand is for life necessities, and yet the formal credit system has long functioned as a device balancing the segmentation of the limited rural residuals between farms and the government. Henece, there has endogenously come into the feasible existence of the non - government system. In the long run, farms income will determines the evolution of the rural credit system, instead of government unilateral intention to reform. In rural regions with agriculture as the major industry, it is feasible for rural credit cooperatives (RCCs) to persist the principle of cooperation. On the other hand, in other rural regions with high development of non - agricultural industries,RCCs can be restructured to be joint stock banking corporations.