Rural Social Resources In Rural Formal Financial Organizations Operate

The financial problems have hindered the development of countryside. Since new countryside-construction has been promoted, the folk debit is still main channel of countryside financing. At the same time, the absence of formal rural financial institutions' service, however, is still quite prominent. Though long-term folk debit in Wenzhou city of Zhejiang province offsets the problems of peasants' funds to a certain extent, the enormous need for capital, which is caused by peasants' large-scale production, can't be solved. Under this circumstance, the peasants in Ruian of Wenzhou established farmer combined loan groups, evaluate the level of credit and take the measure of guarantee and counter guarantee. And they applied for a loan to the rural cooperative banks by the means of cooperation.The article studies how a formal rural financial institution works by using local resources, furthermore, it will help us comprehend our Chinese rural society from one perspective. Beginning with inspiration which the operation of non-government finance exerts to the formal one, I mainly apply qualitative research which was based on fieldwork in Wenzhou city and use the farmer as the fundamental unit; investigate peasants' choice motivation and social resources. At the same time I observe how trust,the reputation mechanism,rural elites perform in a formal financial operation.The article reveals the practice implication of Ruian Rural Cooperative Bank which being regarded as a kind of formal rural financial institution, uses local resources, furthermore, makes its way out of the path, which is different from formal financial institution of estranging folk.