Rural Finance System Reform Research Based On The Theory Of Supply And Demand Balance Relationship In Henan Province

Finance is the core of modern economy. In recent years, with the development of China's economy, financial business level of our country has improved in every aspect. Rural finance is a vital component of modern finance, which is the most significant allocation system of the capital elements in rural area, and plays an increasingly important and irreplaceable role in rural economic development. Just as the China's reform, the reform of rural financial system in Henan province has lasted for 30 years. Although rural financial system reform is becoming smoother and more optimized in the structure adjustment, and partly meets the needs of rural economic development, it has still lagged the rural economic development in Henan province. The problems of the system, technology, operation etc. nearly exist throughout every aspect of rural finance in Henan province.By using the theory of balance relation of supply and demand, the thesis discusses the problems of the rural financial system reform in the background of new rural construction with the base of the rural finance reality of the Henan province. According to the definition of the rural finance, this thesis first defines the research scope of the rural finance concerned, and then it gives a comprehensive understanding of current situations and the system of relation of supply and demand of rural finance in Henan. Next, it analyses the features, factors and trends of supply and demand deeply. Except the banks and other formal financial institutions, many informal financial institutions in rural area have also played an irreplaceable role in rural economy adjustment. The prospect of agricultural insurance is optimistic, and the trend of shrinking agricultural insurance is difficult to change. Through the above analysis, the serious contradiction and unbalanced relation of supply and demand, the large funds gap between them are shown. According to the existing problems, a question is proposed that how to transform rural finance from imbalance to balance, and a balanced model of the supply and demand is made. In the end, regarding the problems and imbalances the article mentioned earlier, research results of rural finance in China and other countries is conveyed, and countermeasures to improve the financial system are put forward with the ultimate aim of promoting the reform of rural financial system in Henan province, preventing and reducing financial risks in rural areas to make it provide better services for rural economic development.