Therefore, the government must deepen the reform of rural financial system and increase the financial support for Agricultural Industrialization in the course of advancing it.
There are several problems in the rural financial system in China,such as the difficulty in loaning,the outflow of agricultural funds,the coexistence of formal and informal financial institution,the lack of commercial finance and competition mechanism,of which is government respecting rather than market orientation.
In 1994, China's rural financial structural reforms mainly led to the formation of agricultural policy finance, rural commercial finance and rural finance system based on the rural cooperation, which will provide the loan to agriculture and support agricultural development.
First, the paper make the review and the summary to the course of rural finance system reform, which has experienced three stages approximately: Rural finance preliminary reform;
In the new history, with the propulsion of the economy system innovation and the opening-up policy, specially, with the processes of the rural economy system innovation and the development of the rural social economy, the limitation of rural-finance system as become more and more conspicuous, and can not keep up with the steps of the development of our national market-economy, and had become the obstacle of the economy development and the innovational processes.
After the campaign of opening to the outside world and economic reforms, the mechanics of Agriculture Band of China and the whole rural financial systems have undergone fairly successful reforms and innovations in a variety of aspects .
Based on summarizing the experiences of past reform of economics systems, the paper insisted that reform logic of rural financial systems should be the same as that of economics systems. It is an inevitable choice of reforming and deepening rural finance to develop rural private finance. The paper also analyses the possibility of the growing in rural private finance, and points out the institutional guarantee of developing rural private finance.