China's Rural Financial Supply Problem Research

In China, the development of agricultural, the growth of rural economic growth and increasing farmers’ income are all related to national economic, social development and to modern constructions.The development of Agriculture, Rural areas and Peasantry" needs capital investment. However, the level of development of China’s rural economy is still relatively backward, so rural economic entities internal accumulation is difficult to meet their demand for capital. It is time to establish and improve the rural financial supply system which is compatible with the level of economic development in rural areas as support for the" Agriculture, Rural areas and Peasantry" backing.Gradually promote innovation and reform of China’s rural financial system is necessary to promote the harmonious development of rural economic and social.In this thesis, China’s rural financial supply system reform and innovation is the object of the study. By using the theory of rural finance and financial market, this paper analyzed the status quo of rural financial system of China and the relationship between supply and demand systematically.Currently, although China’s rural financial system is established at the aim of fulfilling rural financial demand, their cooperation, policy and commercial financial institutions function confusion, conflict of interest, and functions of the dislocation eventually leading to these three functions are difficult to fully play its due role. Irregular finance played an important role in balancing rural financial supply and demand, but has always been suppressed and combated by government. In addition, although the commercial finance is the main body of the rural financial supply system, the lack of a series of financial market-oriented system such as agricultural insurance or interest rate liberalization further increased the imbalance of supply and demand of rural finance.After in-depth analysis of China’s rural financial imbalance between supply and demand issues, the paper also analyzed the practices and experiences of establishing rural financial supply system in other countries. First, deepen the reform of rural formal financial institutions. Second, actively guide and regulate the irregular finance, make it an effective complement to the supply of rural finance. Third, the government is committed to creating good rural financial development environment.The thesis studied the structure of organization and rules in our rural fiance-supplying system by analyzing the current condition of China rural fiance system and the root of inequibrilium exists in rural finance supply and demand, which will make some sense in deepening China rural finance reform and accelerating innovation.