Study On Financial Support Of Domestic Rural Economy

China is a developing agricultural country with a vast agricultural base, so rural economic development directly relates to the social harmony and stability. Since the 1990s, "three rural" issue has become a bottleneck of constraining China's economic development. Rural economic development is the key to solving the "three rural" issue, and rural finance is at the core of rural economic development. However, over a long period of time, China has focused on the city in financial reforms and rural financial problems have not been given enough attention. Currently in China, the phenomenon, such as backward rural finance, rural outflows of capital, and the difficulties of farmers getting loans, is widespread, which has seriously hampered the development of China's rural economy. So how to eliminate the backwardness of the rural financial and effectively support rural economic development has become a major topic of common concern.This paper, based on previous studies, taking Hubei province for example, probes China's rural financial supply and demand problems. Then it comes to the conclusion that financial repression exists in both supply and demand in China's rural areas. This paper attributes China's rural financial repression to the weak nature of agriculture itself, weak supply system in rural areas, single rural financial market structure and product, etc. It learns from foreign advanced experience, and puts forward to a series of measures and suggestions from different perspectives, including improving the rural financial supply system, improving the agricultural insurance system, encouraging innovation in rural financial products and services, optimizing the financial ecological environment in rural areas.Full text of the five chapters consists of:The first chapter, introduction. This chapter first points to the writing background and significance, the research trends at home and abroad, and frame structure and research methods.Chapterâ…¡, the current supply and demand analysis of China's rural financial. First analyze behavior and the status of supply bodies in details, which include the rural cooperative finance, commercial finance, Policy-oriented finance and non-formal finance. Then analyze the main important demand bodies - farmers and rural SME financial needs. The conclusion has a strong convincing because the process takes Hubei province for example with a combination of qualitative and quantitative analysis methods. It concludes that the phenomenon of financial repression exists in both supply and demand in China's rural areas.The third chapter, the main crux of the rural financial repression. Through the analysis, China's rural financial repression mainly dues to the weak nature of agriculture, the imperfect rural financial system, the lack of supporting external environment, etc.Chapterâ…£, the experience and enlightenment of foreign rural financial development. Through the analysis of the rural financial experience of the United States, Japan, India and Bangladesh, it obtains some revelation of China's rural financial developmentChapterâ…¤, the countermeasures and suggestions of developing China's rural finance. Combined with China's economic and financial development, it proposes some countermeasures and suggestions advancing China's rural finance. These responses and recommendations include not only improving the supply system of rural finance, but also innovation in rural financial markets products and services improving the agricultural insurance system, optimizing the financial ecological environment, in order to improve the rural financial supply at the same time release the financial needs of existing and potential, and more effectively to support rural economic development.Previous studies on rural finance, mainly from the perspective of rural financial supply defects in the rural financial system, suggested by some rural financial reforms and measures to improve the supply system. But this paper analyze status of China's rural finance from the perspective of both supply and demand. The conclusion is that rural finance repression exists not only in the supply side, but also in the supply side. When it comes to the countermeasures and suggestions, this paper attempts from various angles developing China rural finance, releasing the suppressed financial needs while improving the supply, in order to promote rural economic development better. Because of the limited time and energy, in the analysis of supply and demand status of China's rural finance, I selected Hubei Province rather than the whole country. That may be a defect, but on the other hand, it also makes analysis more in-depth and specific. In addition, this paper describes the phenomenon of financial repression only making a simple analysis with data and examples and making a simple analysis, but not making an accurate measure with the appropriate financial models and empirical methods, which is a major shortcoming. In short, due to the restriction of the writer's knowledge level, this paper is still much to be desired. I would urge criticism, corrections.