Research On Rural Financial Service System Based On The Function Theory

Rural economic development is the basis of the stability of chinese national economy. There must be a standard and sound rural financial service system to provide financial support and protection so that the rural economy would be developed rapidly and steadily. In "Eleventh Five-Year" Planning Outline, the construction of New Rural Area is the primary task of all kinds of strategies. From 2004 to 2009, to speed up rural financial reform and innovation has been emphasized in the NO.1 Document issued by government. So the research reflects the strong practical significance. In the construction of New Rural Area, capital is necessary. Although in the outline it is pointed out that the government should increase input of capital, financial funds are too limited to meet the huge demand for the construction of New Rural Area.Based on the Finance Function Theory of Zivi.Bodi and Robert. Merton, this paper is positioned according to the idea which is " Financial demand-The function of financial system-The configuration of financial system". Through the analysis of financial demand caused by the construction of New Rural Area, the functional objections of existing Rural Financial System and the situation of rural financial function, this paper demonstrates the necessity of reforming and consummating Rural Financial System and building a new Rural Financial System which involves policy finance, commercial finance, cooperation finance, civilian finance and new-style financial organization and which is competitive, multi-institutional, complete-functional and which can suit the construction of New Rural Area. In the last part of this paper I put forward corresponding policy advice. The main contents of this paper are as follows:Firstly, we introduce the background of the research, appreciate the research actuality on Rural Financial System's, recommend this paper's fundamental layout, academic instrument and investigative means, and finally generlize the innovation and scarcities of this paper. Secondly, we briefly introduce the Finance Function Theory of Zivi.Bodi and Robert.Merton and analyze the guiding role of the theory in the construction of New Rural Area. Thirdly, we review the history of Rural Financial Service System in Zhejiang Province and analyze current situation from two aspects. Fourthly, we analyze the problems of Rural Financial Service System in Zhejiang Province, and then we study the functional situation of Rural Financial Service System by empirical tests. Finally, based on the above analysis, we propose some recommendations to improve the rural financial service system.