Functional Supervision on Rural Financial System in China

From logic,financial supervision is first and foremost a matter of practice.Financial supervision theory is abstractly concluded from the practice of financial supervision that is created and develops from the change of its supervision practice.This paper first introduces the concept of functional financial theory.It demonstrates the necessity of the rural financial supervision system on the bases of financial supervision and the basic economic mode invisible hand,particularly the characteristics of China's rural finance.It also points out the shortcomings in the rural financial supervision system that are related to supervision institution after analysis of its history.Based on the functional view of financial system,it finally proposes five aspects in such creation of China's rural financial supervision as supervision concept,supervision system,supervision ways and internal control system and the safeguard of legalization.