Study On Financial Developing Strategy Of China's Countryside

As a large agricultural country , agriculture, rural area and peasant are three big issues that will have great influence on the national economic growth and modernization. It is imperative and urgent to promote economic growth in rural areas and search for new economic developing points. Considering the importance of studying finance in the countryside, it is crucial to improve banking system in rural areas so as to effectively boost the economy in these backward areas.Finance in rural areas promotes local economic growth and influences peasants'incomes. The construction of new countryside and harmonious society is also casted positive shades by banking system. Since the period of opening and reform, China's countryside has experienced reforms in three stages which make the banking system more and more consummate. Nevertheless, rapid economic development in rural areas and radical change in industrial structure make the current rural banking system far from satisfactory. By contrast, the relatively lagging reform and the weak function of the banking system in rural areas to some extent restrict the development of rural economic growth. China's rural banking system is constituted with regular and irregular finance; however, the mismatch of supply and demand dissatisfies the development of rural economy.The paper discusses the causes for the current situation of China's banking system. It also reveals that other countries'successful experiences, for instance, the Grameen Bank built up by Yunus cast profound inspiration to China's banking development in rural areas. Bearing a clear goal in mind, the paper tries to study the development strategy of China's rural banking reform. In order to build up a new rural banking system, sufficient capital and supportive policy from the government are needed. At the same time, a many-faceted and competitive banking system is also a good try. Meanwhile, accelerating the reform of property right policy and increasing intermediate markets in rural banking markets are crucially important. As for banking institutions, it is important to establish multi-functional institutions to serve for the rural areas. Agricultural bank, credit cooperative, city commercial bank, other rural financial institutions, policy bank, postal service save so on and so forth also play an important role in boosting rural economic growth.