Research On Financial Support For New Rural Construction In Wuwei City

In the modernization of our country, one of the most important task is to build a new socialist countryside. To build a new socialist countryside, a lot of money should be invested to meet such needs. Therefore, it is necessary to improve the financial industry in rural areas.In the current rural economic development of our country, however, it is lack of good financial support. The removal of the state-owned commercial banks in rural branch led to the contraction of rural financial network. The huge loss of rural capital has become the lag of rural financial services. And the difficulties in getting loans for farmers seriously restrict the development of rural economy in our country. In this paper, rural credit cooperatives and its support in the new rural construction were analyzed through the selection of Wuwei City as an empirical analysis. The main results are as follows:With the rural credit cooperatives in the course of new rural construction, the balance of loans to farmers has increased year by year in Wuwei City. New product promotion efforts increased and the construction of information infrastructure strengthened then. But there are still many problems of rural credit cooperatives in support of the new rural construction in Wuwei City: 1) the contradiction between the lack of strong demand for funds and credit scale,2) the outflow of rural funds leading to inadequate support for agriculture, 3) the contradiction of rural diverse financial needs and the limited financial services, and 4) the less formal financial institutions and the coverage of credit. Further analysis showed that the main reasons for these problem are the limit of natural characteristics of the agriculture and the rural economy. The restrictions of current rural financial system and the poor rural financial ecological environment in the financial support has restricted its function.In view of the existing problems and causes of the proposed innovation loans, it is urgent toexpand credit business, simplify the procedures of credit and credit services development varieties. For industrialized operation of agriculture to increase credit support for agriculture innovation, the establishment of rural credit guarantee mechanism and increase agricultural credit are proposed. In Wuwei City, to provide the basis for the government’s macroeconomic policy, the efforts of the countermeasures for new rural construction of financial support has also been suggested.