Research On The Reform And Innovation Of Rural Financial Institutions In China

In modern society, finance plays a vital role for a country’s development. However,the dual economic structure of our country and the rural economy has lagged far behindthe development of the city. Therefore, the responsibility of promoting the rural economyto have a quickly and sustainable development falls on the shoulders of rural financeunder the new socialist situation. The environment of the rural economy is complex. Forthe rural financial capital are limited, the rich land and human resource can not bedistributed effictively and resonably. The rural financial institutions are hard to move on.The policy to benefit people gets little success. Traditional private banks, loan-sharkingand formal commercial financial institutions coexist. The rural financial system should befurther improved. Our country is a big agricultural country, the population of agricultureaccounts for more than half of the whole.Only the level of the rural economy has beeneffectively improved and farmers’ lives have achieved real prosperity, the overall level ofChina’s economy can be steadily improved, and the quality of people’s life can be trulyguaranteed.Thus, rural financial reform is not only the inevitable result of the law ofrural finance, it is also the historical choice to promote our economic development andprotect the livelihood at the present stage. Based on Marxist political economics anddevelopment economics theory, the article summarize the development process of therural finance and analysize the characters of foreign rural finance to come up withspecific comments and countermeasures for rural financial institution’s reform in China.