Influence of Outflow of Rural Funds on Financial Support for Agriculture

Since the reform and opening-up, rural finance has made enormous contribution to rural economic development. However, with commercialization reform of financial institutions, the conflict between outflow of large funds and shortage of funds for rural economic development becomes prominent, leading to serious degradation of agricultural support function of rural finance. From the perspective of outflow of rural funds, this paper analyzes the problem of “deviation from agriculture” of rural financial business, and derives the conclusion that it is necessary and urgent to restore agricultural support function of rural finance. Then, it discusses restoration path for agricultural support function of rural finance. Finally, it comes up with some effective paths in accordance with existing problems in agricultural support function of rural finance