| Building a new socialist countryside requires huge capital, while there is a serious shortage of funds in rural areas of China. Farmers' financial needs can not be met effectively, because commercial banks absorb deposits in rural areas and invest in cities, and the financial supporting of agriculture policy banks is limited. The "loan difficulties" of Farmers is a worry to the health of the rural economy. To achieve the construction of new socialist countryside, the first thing to do is to satisfy farmers' financial need.The emergence of microfinance in rural areas provides a new way to solve the problem of farmers' "loan difficulties". International successful experience shows that microfinance in rural areas plays an important part in the alleviation of rural finance imbalances and promotion of rural economic development. To solve the problem of poverty in China, microfinance was introduced into China as a poverty alleviation approach. Although the Government is actively promoting microfinance development in China's rural areas, but the "loan difficulties" still exist. There are serious obstacles in the development of microfinance in China's rural areas. Therefore, how to promote microfinance in the development of rural areas in order to better address the problem of farmers'financing and improve economic development in the rural areas is the issue we need to explore.To alleviate the finance imbalance of rural areas and promote the development of microfinance in China better, this paper tries to find underlying causes of finance imbalance of rural areas through the analysis of supply and demand of rural finance. Based on the theory of financial exclusion, this paper thinks that microfinance is an effective tool. The fact is that there are still a lot of problems in the promotion of microfinance in rural areas, so according to the reality of our microfinance in rural areas, this paper gives some suggestions on how to improve the status of microfinance in rural areas. |
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