Four rural focus of financial reform

 Zhou JB in the Deepening rural financial reform, is the focal point the following four aspects.

First, strengthen the rural credit system, extensive credit rating. Good credit environment is to reduce the risk of rural financial markets, rural financial markets stabilize an important guarantee for the order is to expand rural credit funds, to guide the basic conditions of rural financial intermediation. Improvement of social credit environment is the deep rural financial needs of the main problems in getting loans realistic choice. The extensive development of credit rating will greatly reduce the information asymmetry problem faced by credit unions. Meanwhile, the credit will also make credit unions more willing to lend out the funds to reduce the problem of insufficient collateral farmers to prevent the exclusion of such groups outside the system of credit loans.

Secondly, the promotion of rural financial institutions to develop a flexible credit policy, to develop micro-credit. In the present stage, most are small-scale agricultural projects, mainly in rural households as the unit of production and consumption. Meet their financial needs for building a new socialist countryside, has a remarkable significance. The micro-credit is designed to provide a small amount of low-income sectors of the continuing credit service activities, whose purpose is poverty and promote development. The main business of micro-credit to poor farmers or small business grant short-term unsecured small loans, to obtain self-employment and self-development opportunities.

Third, developing agriculture and the insurance industry. The insurance industry is the financial system is an important part, its operation of the entire financial system and economic development has an important role in promoting. Agricultural industry as a relatively high risk, without the necessary risk management, will hinder the development of rural financial markets, further weakening the ability of financial support for agricultural products. Agricultural insurance has a strong public and external nature, the establishment of agricultural insurance system, can improve the credit status of the main agricultural operations, and guide agricultural finance capital inflows, decentralized rural financial institutions, currently an independent risk and bear the social costs of agricultural systems, maintaining rural financial system stability.



Fourth, improve the rural financial regulatory system. Rural financial regulatory system is the system of rural financial infrastructure an important part. With the rural financial market step by step, the relaxation of access policies, village banks, lending subsidiary, Mutual funds and other rural areas will be a new type of rural financial market competition will inevitably bring about financial innovation, and financial order new challenges for the healthy and stable. To establish a diverse, layered and orderly financial system, China's rural financial regulation and supervision must get rid of the inertia of executive-style regulation, establish a market-oriented rural financial well suited to rural financial regulatory system.