Agricultural modernization and reform in rural financial system

To build modern agriculture,develop rural economy and increase peasants' income need strong support of the rural finance However,nowadays state_owned commercial banks withdraw from the countryside in great numbers;agricultural development banks only offer loan of purchasing grain;credit cooperatives deviate from the aim of cooperation;postal savings collect a large amount of fund from the countryside,which lead to the serious lack in agricultural credit funds.Thus,we must reform rural financial system and form reasonable fund relations among policy banks,commercial banks,rural credit cooperatives and postal savings;relax rural financial institutions' entering criterion and develop new cooperative financial institutions;reform tax and interest rate policy,form fine mechanism of the agricultural funds,increase agricultural credit funds,collect funds in many ways and support agricultural modernization.