Study on Rural Economy and Rural Financial System Reform

Abstract

Financial support for agricultural development and the growth of rural economy issue is a global issue. Rural finance is an important part of the financial system, the development of rural, and finance plays a positive role in rural economic development. We firstly explored the mechanism of financial system promoting rural economic growth, and then proposed new ideas on the reform of rural financial system, in terms of rural policy finance, rural commercial finance, rural cooperative finance and rural informal finance. Current Situation of Rural Financial System in China Rural Financial Service Structure. Through 30 years of development and reform, it has formed a relatively mature rural financial service system in China, constituting policy financial institution, commercial financial institution, cooperative financial institution and informal rural financial institution. Among them, only Agricultural Development Bank of China (ADBC) belongs to policy financial institution; there are two commercial rural financial institutions - Agricultural Bank of China (ABC) and Post Savings Bank of China (PSBC); rural credit cooperatives, rural cooperative banks, rural commercial banks all belong to cooperative financial institutions. These three types of institutions are regarded as formal rural financial organizations, while informal rural finance institutions refer to private finance organizations that are not wholly regulated by People's Bank of China and China Banking Regulatory Commission, including small loan companies, village bank, rural cooperative foundation and private banks, etc. They are playing the key role in rural economic development, as shown in Fig. 1: