Research On The Rural Financial Services In China

The program that building the new socialist countryside has decided to systematicallysolve the problems related to “Rural area, peasant, and agriculture” through a series of measures,including coordinating the economic and social development in both urban and rural areas,promoting the modern agricultural development, raising up peasant’s income, improving therural infrastructure, speeding up the rural social public service, and moving the reform in ruralplace deeper, so as to help agriculture pass the development bottleneck, create a new picture ofthe rural areas, help the peasants get rid of poverty, and build China into a moderatelyprosperous society in a well-rounded way. However, as the building and development of thenew socialist countryside, the serious unbalance of financial services supply and demandappears in many rural areas, which making the obsession that the informal finance growingillegally even worse. So it will be significant to find out the solutions to the problems of therural financial services. This paper aims to study the rural financial services, and then find outthe strategies and approaches of improving the quality of the rural financial services.This paper use the literature study, theoretical analysis, field research and other researchmethods to study the core issue of the financial services market in rural areas. First, this paperstudies the theory of rural financial repression, the theory of information asymmetry, the theoryof market failure, and the rural financial product supply and demand balance theory; and thenanalyzes the present situation and problems of the rural financial services market in China. Onthis basis, the paper puts forward the countermeasures of improving rural financial servicequality in China.This paper focuses on the improvement and innovation of rural financial services in Chinafrom the point of view of government-guided multi-stakeholder involvement. To establish arural financial service market system that the government guides farmers and market toparticipate in market, through the improvement of rural infrastructure and the various systemsand the establishment of the policy support system for rural financial; to innovate the financialproducts of the existing regular rural financial institutions, through the establishment ofefficient rural financial services market, the creation of the finance lease centers and the innovation of the mortgage system; to build a rural financial market structure that the financialinstitutions are diversification and the market competition is fierce, through the promoting thelegalization of informal rural financial institutions; and to construct risk control and transfersystem of rural financial services, through the establishment of the guarantee fund and thefinancing credit system with the multi-finance.