The Study On Rural Small And Medium-sized Financial Institutions To Support Socialist Countryside Construction

In the 21st century, the development of rural areas received the government’s attention, especially regarding the development of rural finance. Because the financial institutions prefer to focus on the city, so the development of the rural finance has been a slow process. Therefore, it is essential for small and medium-sized financial institutions to develop rural finance. Judging from the present situation, finance institution has many issues which restricted seriously the economic development of the rural China. This issue is particular in:First, the focus of the rural financial institutions’ services transfer to the town and city; second, the small and medium-sized financial institutions’ services has not yet covered all jurisdictions; third, the financial institutions’ innovative products is in serious shortage for rural markets; fourth, many of the financial institutions meet the trouble of the raising capital.In recent years, local government provides a number of preferential policies for the development of rural finance, and financial services in rural areas have been greatly improved. However, due to the development of west and east of China imbalance, eastern coastal areas of rural finance development situation is significantly better than the west, environmental conditions of the western limits the development of the rural finance. How to promote the financial product innovation in backward areas are the main difficulties faced by building a new Socialist countryside.The business activity of rural small and medium-sized financial institutions is closely related to the construction of the Socialist countryside. Lacking of enough funds is the main problem for the construction, thus the financial institutions’ support is important. Among the small and medium-sized financial institutions, rural commercial banks which restructured by the Credit Union have occupied the main status and undertake most policy requirements of government. Because of the many problems in rural financial institutions made themselves in a disadvantage status, so the financial institutions must hold the potential opportunities and take efforts to develop new markets.Based on the various agriculture-related financial products of the Rural Commercial Banks of Guiyang, this paper presents that the financial institutions wanted to remain invincible in the increasing complex financial environment should strive to innovations and improve its services. Rural financial institutions should make use of its special status and policy support from the Government, offer the unique rural financial products aimed at different group need for capital, strength its electronics business followed by the " Internet + times", and establish the laws and regulations to strengthen the supervision.Firstly, the paper reviews the history of the development of small and medium-sized financial institutions in China, as well as domestic and foreign agricultural financial services experience. Based on the present situation of financial institutions analysis the issues faced by rural fiance。Lately, this paper utilizes the Rural Commercial Banks of Guiyang to analyze its financial product innovation and service innovation and summarize its experience. Finally, this paper put forward specific recommendations for the service of China’s rural financial demand combined with China’s actual conditions.