Legal Issues of Rural Financial Supervision System in China

Xu-song Jiang
2017 Proceedings of the 2017 3rd International Conference on Economics, Social Science, Arts, Education and Management Engineering (ESSAEME 2017)   unpublished
This paper aims at studying the legal issues of rural financial supervision system in China, and tries to solve the problems. For this objective, this paper mainly analyzes the reality demands of rural financial supervision system, to demonstrate the significance of perfecting the supervision system. Then, based on the investigation and discussion, the concept for perfecting Chinese rural financial supervision system is proposed. It mainly includes the following aspects: firstly, improve
more » ... tion and improve the legal system of rural financial supervision. Secondly, set reasonable supervision objectives, adopt suitable rural financial regulation, establish a complete quality control mechanism and corporate governance structure, so as to implement fostering rural financial endogenous power supervision concept. Thirdly, give full play to and strengthen the policy oriented and financial regulatory functions of the Ministry of Agriculture and policy oriented finance in rural areas. At last, improve the social credit checking system, agricultural insurance system and deposit insurance, so as to construct complete rural financial risk prevention system and market withdrawal mechanism. In conclusion, the improvement of rural financial supervision system needs the efforts of various aspects. And only by the joint effort can the legal problems be solved efficiently. Analysis of the current situation of rural financial supervision system in China The rural finance in China has its own complexity. On the one hand, restricted by the actual conditions of agricultural country and the urban and rural binary economic structure, it results in that China's rural development lags behind. And agricultural economy is underdevelopment, natural risk is high, and farmers' ability to resist risks is low. As a result, the rural financial market is weak, and the sustainable development is insufficient. Because the reform of rural financial system is relatively backward, formal finance has exposed more and more problems in the allocation of capital in the process of rural economic development in China." On the other hand, the state-owned commercial
doi:10.2991/essaeme-17.2017.4 fatcat:uob6lrjpbncarhxqihkoe752xq