Study On Rural Financial System

The issues of agriculture, rural development and farmers are always the fundamental concerns of the overall works of Party and the State. The Jiangsu Province has a more developed rural economy, but its rural finance development is still relatively inadequate. Especially, the rural finance development in South Jiangsu, Middle Jiangsu and North Jiangsu are obviously imbalanced. In2014, the Jiangsu Provincial Party Committee issued its first policy document, which states that in2014and a period that follows, Jiangsu Province will comprehensively deepen the rural reforms, steadily promote the agricultural modernization and the integration of urban and rural development, ensure a continued rapid growth of the farmer’s income, strengthen and develop the well-structured rural situation. As the consequence, this article would be based on the present situation of the supply and demand of the Jiangsu rural finance to analyze the existed problems and propose development suggestions on those bases. This article has great significance for the sustainable development of the rural finance and the harmonious development of the rural economy in the Jiangsu Province.In this context, this article conducts relevant analysis on the present situation of the supply and demand of rural finance in Jiangsu and provides policy suggestions against the existing problems. Firstly, through studying the references at home and abroad and organizing the materials collected, the history of Jiangsu rural finance development is elaborated in detail. Secondly, through collecting the mass data in Statistical Yearbook of Jiangsu2012, the writer analyzes the general situation of the present development of the Jiangsu rural finance and raises the main problems exist in the development. Meanwhile, the writer conducts field sampling survey on298peasant’s households and265rural small and medium-sized enterprises in8cities across the South Jiangsu, Middle Jiangsu and North Jiangsu so as to analyze and find out the demand status quo of the Jiangsu rural finance. Lastly, based on the analysis of the present situation of the supply and demand of the Jiangsu rural finance, the writer summarizes the main problems of the supply and demand of the Jiangsu rural finance and proposes relevant policy suggestions.Through the comparative analysis of the mass data, this article finds out that the present Jiangsu rural finance is in a overall good situation. The top problem is that the rural finance development in South Jiangsu, Middle Jiangsu and North Jiangsu are obviously imbalanced, which especially appears in the scale and level of the financial development, the structure of the financial development and profitability of the financial organizations and the capital allocation efficiency, etc. About the financial demand of the peasant’s households, because of the high requirement of the formal financial loans and the farmers’ low cognition of the relevant financial services, the effective formal financial demand of the peasant’s households is inadequate. About the rural small and medium-sized enterprises, the main problems of the finance are the insufficient cash flow and the excessively high costs of the capital. The rural small and medium-sized enterprises are mainly in manufacture industry and the consciousness of credibility is below demand, which resulted in their financial demand cannot be satisfied. On this basis, the article provides policy suggestions for further development of the Jiangsu rural finance.