Chinese Rural Financial System--A Research On The Potential Problems And Countermeasures

A generous agriculture with rich peasants in stable countryside secures a strong economy, a rich country and a safe society. In2013, developing agriculture become the core of the central document once again, The statement that the agriculture is important in the core job of Party and Government is the first sentence of Central first document in2013.The fully implement the spirit of the party’s National Congress; We will unswervingly follow the socialist road with Chinese characteristics, striving to build a well-off society in an all-round manner. The central committee of the party emphasizes that solving the problems of agriculture, rural areas and farmers are the most important thing all along the time. The urban-rural integration development is an essential way to solve the tri-agricultural problem. To promote industrialization, information technology, urbanization, simultaneous development of agricultural modernization, we make great efforts to strengthen the support for the foundation of modern agriculture, advance the construction of new socialist countryside fundamentally.Among the great target of the development of modern agriculture and the construction of new socialist countryside, the reform and improvcment of rural financial services, strcngthcn the government capability of guiding the development of rural financial reform, increase the intensity of commercial financial support for agriculture, to make policy finance and financial cooperation play a greater role, increase the credit availability of agriculture-related loans.; innovative financial products and improve financial services, and effectively meet the priority needs of farmers for credit, increase support for the production of new business entities (professional investors or family farms, farmers’ cooperatives, agricultural enterprises) credit; strengthen fiscal levers for effective cooperation and financial policies, implement county agriculture-related loans to financial institutions and rural financial institutions to increase incentives targeted cost subsidies, tax incentives and loans to farmers to protect farmers and other small secured loan. Stable county (city) legal status of rural credit cooperatives; continue to deepen reform of rural credit cooperatives. Active exploration and innovation, making a new model of Agricultural Bank of Rural Credit Cooperatives service "agriculture, rural area, farmers", strengthen the functions of policy orientation of the Agricultural Development Bank, encourage and support national development banks for promoting the development of modern agriculture and accelerate the funding for construction of new countryside. Provide conditions and support the establishment of social capital, to participate in the new rural financial institutions, multi-form, multi-faceted payment services to improve rural conditions, smooth settlement channels. Strengthen agriculture-related credit and insurance coordination and cooperation, innovation arrived in line with the rural characteristics (qualitative) charge by way of security and financing tools to build multi-level forms of agricultural credit guarantee system.Many domestic and oversea scholars have do the research about how to promote rural economic development, and have great achievements. However, the current situation is still not able to effectively solve the problem. The rise of new institutional economics supplement improves the economics of classical theory for economic growth, the system as a function of economic development is an important variety. Therefore, learn new institutional economics theory, the analysis of China’s current rural financial institutional arrangements, has a practical significance.This paper draws on the basic theory of new institutional economics, which is a combination of financial development, credit rationing theory, the use of information economics, industrial economics, microeconomics, macroeconomics, rural finance theory, behavioral finance, and previous theoretical, microscopic analysis and macro analysis combine with functional analysis and institutional analysis of, on the basis of relevant experience from home and abroad, combined with China’s economy in the transition period, it makes a research and exploration for the construction of China’s rural financial system.