Study On Comprehensive Reform Of The Township Financial Institutions In Fujian Province

The task and operating environment of township financial institutions have changed dramatically since rural tax reform. It has become the main task of rural finance to implement policies that benefit agriculture, strengthen financial supervision, and provide public services. The requirement of rural finance management to become more scientific and meticulous has been increasing, so the volume of business increased exponentially. But township financial institutions have to face a series of outstanding issue that makes them difficult to undertake the burden of promoting the reform of rural public finance. In such a situation, it has become an urgent study on how to promote comprehensive reform of rural financial institutions as quickly as possible and make the institution effectively get rid of the current predicament.This paper researches on the base of theoretical study and practical method. Through case studies, it makes clear the problem that the provincial rural financial institutions face, such as unclear functions, organization confusion, lack of execution, poor management, and lack of hardware facilities. Then it finds out the reasons of problem above. First of all, the government transformation from the control type to service type is not in place. Second, It is lack of comprehensive and forward-looking considerations on township financial institutions’functions in institutional reform. Third, interest coordination mechanism between county and rural areas is imperfect. Fourth, it neglects long-term self-construction. Last but not least, lack of funds to support construction of software and hardware is another reason due to the current situation. This paper argues that the reform of township finance needs to concentrate on the aim of socialist new countryside and the construction of service type government. It is also needs comprehensive consideration from the external environment and internal construction according to the performance of public financial function. On one hand, it could strengthen external environment support through further reform of rural institutions and public finance, straightening out the relationship between rural areas. On the other hands, it could improve its internal self-construction by function redefinition, improving the management structure, regulating personnel management and implementation of standardized construction of township financial institutions.