Abstract

The problem of rural finance is one of key and difficult questions in Chinese finance reform. With the establishment of village or township banks, the condition on shortage of fund in rural areas will be gradually relieve. However, multi-level rural finance service should be established in order to sever for the new rural reconstruction. This article analyzes that the village or township banks have an important effect on and play an active role in rural finance service system from the connotation and characteristics of the village or township banks and the characteristics of rural
economy in China.

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