The Research On Rebuilding Chinese Rural Financial System Based On Financial Function Paradigm

With the launch of the important strategy to construct socialistic new country, the development of rural economy needs financial support more and more. While the incompleteness of current rural financial system influences new country construction. It is held that for many years what has been followed by the rural financial reform is the financial institutional paradigm. The rural financial reform that is only limited to some remedy within the existent financial structure, instead of developing concrete financial forms such the rules and systems to implement financial functions in terms of the principle of market economy and the change of the external economic environment, and optimizing the financial structure. At present, the development of Chinese rural financial system is insufficient and inefficient. It couldn't satisfy the demands of financial service in rural economic development, and it constrained the development of rural economy too. So we must jump out old reform thinking, should rebuild new rural financial system based on financial function paradigm.From the functional perspective of financial theory, this article analyzes the history, present situation of rural financial system in our country and the experiences of foreign countries, proposes the target and principles of rebuilding a new rural financial system, also reconstructs the new rural financial system and gives political suggestions on it.This article consists of six parts:Part 1:This section includes the background of thesis, definition of the fundamental concept, domestic and foreign scholar's study, research idea and research methods, the innovative points and weak points.Part 2:The section states the basic theory of financial function theory and its development.Part 3:The present situation of rural financial system in China. After a brief review of the history of the institutional reform of rural finance, it inspects the current situation of rural financial system in China from the functional perspective of financial theory, then thinks that, at present, the development of Chinese rural financial system is insufficient and inefficient.These present rural financial institutions are unsuitable for that rural economic principal parts' demands for financial service due to the inadequate participation of rural economic players. At the end of this section the article analyzes the reasons.Part 4:Practices and experiences of rural financial system learned from foreign countries or regions. This section introduces the rural financial system development and operation in developed countries (regions) and in developing countries (regions) respectively. The developed countries include USA and Japan, and the developing countries (regions) include India. At the end of this section the article gives a summary to their experiences. Part 5:Rebuilding Chinese rural financial system based on financial function. Firstly, this section puts forward some new aims and principles of Chinese new rural financial system construction on the basis of analyzing the characteristic of rural financial demand at the present stage. Then, the section issues that china should how to rebuild its Chinese rural financial system based on financial function.Part 6:putting forward the main conclusions of this paper.